(1 year, 9 months ago)
Commons ChamberMy right hon. Friend is absolutely right. He knows that I share exactly the same challenge in our rural areas of making sure that our constituents have access to the bus services they need. I am pleased that the Chancellor has allocated funding for extra bus services across the country, and I look forward to working with him to ensure that that money finds its way to rural areas such as North Yorkshire to provide the connectivity that is so important for people to have opportunity and get access to public services.
(5 years, 5 months ago)
General CommitteesI beg to move,
That the Committee has considered the draft Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 2019.
It is a pleasure, as always, to serve under your chairmanship, Mr Bailey. I am pleased that the Committee have been allowed the opportunity to debate the draft order, which is made under sections 30 and 63 of the Scotland Act 1998 and seeks to confirm legal certainty on Scottish Ministers’ regulation-making powers under section 2 of the European Communities Act 1972. The powers concern environmental impact assessments in relation to electricity generating stations consented under section 36 of the Electricity Act 1989 that are located in the Scottish part of the renewable energy zone. The regulation-making powers are in implementation of directive 2014/52/EU, on the assessment of the effects of certain public and private projects on the environment.
Section 30 of the Scotland Act provides that Her Majesty may, by Order in Council, specify functions that are to be treated for such purposes of that Act as being functions that are exercisable in or as regards Scotland. That power paves the way for the transfer of the specified functions to Scottish Ministers. Section 63 of the Scotland Act allows an Order in Council to provide for any functions of a UK Minister of the Crown, so far as they are exercisable in or as regards Scotland, to be exercisable by Scottish Ministers concurrently with the Minister of the Crown.
The effect of the order is to confirm that EIA regulatory functions connected to energy consent within the Scottish part of the REZ are deemed to be exercisable in or as regards Scotland, and then to confirm that those functions are available to Scottish Ministers.
To give the Committee some context for this technical order, developers who plan to construct, extend or operate certain electricity generating stations must first obtain a consent under section 36 of the 1989 Act. The generation, transmission, distribution and supply of electricity are reserved matters under schedule 5 to the Scotland Act. However, since 1999 functions relating to electricity have been transferred by Executive devolution to Scottish Ministers. The order removes any possible ambiguity around the functions available to Scottish Ministers by confirming the legal position. It confirms that Scottish Ministers have EIA regulatory functions concurrent with those of a Minister of the Crown in respect of the Scottish part of the REZ—the area from 12 nautical miles up to 200 nautical miles from Scotland’s coastline—and thus confirming that the UK meets its obligations to transpose fully the EIA directive.
The Committee has just witnessed the shortest shadow ministerial reign in parliamentary history, as my hon. Friend the Member for Glasgow North East has now arrived.
Is a section 30 in this case permanent? Section 30s have been used in the past to transfer powers temporarily to the Scottish Government. For example, section 30 was used to allow the Scottish Parliament the power to hold the independence referendum in 2014. Is it permanent, and how can we be assured that the Scottish Government will use the powers, given that many powers that have been transferred—particularly in welfare under the Scotland Act 2016—have been handed back to the UK Government?
The hon. Gentleman—I congratulate him on his tenure as shadow Minister, which he carried out with great aplomb—makes a reasonable point, which I will come back to in my summing up. My initial reaction is that the response would be affirmative, but I will come on to that.
The draft order was laid one week before another related instrument, the Regulatory Reform (Scotland) Act 2014 (Consequential Modifications) Order 2019, which amends the 1989 Act to extend the statutory appeals procedure for consent applications made under section 36 to apply where the energy infrastructure is situated in the Scottish part of the REZ. That ensures alignment with section 36 applications in Scottish internal waters, and in the territorial sea adjacent to Scotland and other applications in relation to such infrastructure.
The UK Government and the Scottish Government have worked together closely to ensure that this order confirms a legal position for Scottish Ministers, and the order demonstrates that the UK Government remain committed to strengthening the devolution settlement and shows that Scotland’s two Governments are working together. As indicated, the order is necessary. I hope that hon. Members will agree that the practical result is to be welcomed, and I commend the order to the Committee.
I thank all hon. Members for their valuable and short contributions. I am afraid that I lost my bet—I was hoping to be done by 9.3 am. I would like to confirm the point raised by the hon. Member for Edinburgh South on section 30: this is seen very much as a permanent situation. Importantly, this instrument aims to confirm that Scottish Ministers have certain functions, concurrent with those of a Minister of the Crown, relating to the regulation of the assessment of environmental effects under the EIA directive in respect of the Scottish part of the REZ.
Question put and agreed to.
(5 years, 5 months ago)
General CommitteesI beg to move,
That the Committee has considered the draft Forestry and Land Management (Scotland) Act 2018 (Consequential Provisions and Modifications) Order 2019.
Mr Tomlinson—sorry, Lawrenson.
It is early, Mr Robertson—it is a while since I have been here at five to 9. It is a great pleasure to serve under your chairmanship. This order is made in consequence of the Forestry and Land Management (Scotland) Act 2018, which for ease of use I shall refer to as the 2018 Act. The Act received Royal Assent on 1 May 2018, having been passed by the Scottish Parliament on 20 March 2018.
The order is made under section 104 of the Scotland Act 1998, which allows for necessary or expedient legislative provision in consequence of an Act of the Scottish Parliament. In this case, provision is required in consequence of the aforementioned 2018 Act. It was requested by the Scottish Government and has been agreed between the UK, Scottish and Welsh Governments.
The 2018 Act and associated secondary legislation will complete the process of the devolution of forestry, which started with the Scotland Act 1998. The 2018 Act repeals the powers and duties held by the forestry commissioners, in so far as they relate to Scotland, and provide new powers to Scottish Ministers. The 2018 Act is due to be commenced on 1 April 2019.
Over the last decade, responsibility for forestry has been increasingly managed separately in England, Scotland and Wales. While forestry policy is a devolved matter in Scotland, the management of forestry, including Scotland’s national forest estate, has to date been undertaken by the forestry commissioners, who were designated as a cross-border public authority on devolution in 1999. In 2013, the functions undertaken by the forestry commissioners in Wales were transferred to Welsh Ministers and Natural Resources Wales. Selected functions continue to operate across Great Britain, including functions relating to forestry science and research, tree health, and common codes and standards.
As a consequence of the 2018 Act, and to facilitate the transfer of powers, it is necessary for the Government to lay two orders. One is made under sections 90 and 93 of the Scotland Act and is subject to negative procedure. The other—this order—is made under section 104, which is subject to the affirmative procedure. Once these orders and the 2018 Act come into force, the forestry commissioners will no longer have responsibility for the management of forestry in Scotland, which will instead be undertaken by Scottish Ministers.
It is a pleasure to serve under your chairmanship, Mr Robertson. On the cross-border question, a significant number of forests straddle the Scottish-English border. I looked in vain for a definition of who would deal with those forests, how that would be identified and whether Ministers in Scotland may—probably rightly—be able to influence the management of the forests south of the border, because they are a single forestry unit.
The hon. Gentleman is absolutely right to raise that point. For clarification, the order makes provision for cross-border arrangements that may be entered into by Scottish Ministers, the forestry commissioners and the national resources body, in the case of Welsh Ministers. The jurisdictions concerned are England, Scotland and Wales, and a memorandum of understanding is being drafted to agree who will be responsible in these territories.
The order will enable the 2018 Act to be implemented in full. It provides new powers to Scottish Ministers and makes a number of consequential amendments to reserved legislation, with a particular focus on the Forestry Act 1967. Articles 3 and 4, along with similar provisions in the negative procedure order I mentioned earlier, will enable cross-border arrangements to be entered into by Scottish Ministers, the forestry commissioners and various other bodies. While forestry functions and management of the national forest estate will be fully devolved, the order will enable Scottish Ministers to enter into arrangements with other bodies so that each may deliver certain functions on the other’s behalf. This will avoid unnecessary duplication of functions across Administrations and will allow for refreshed and strengthened cross-border co-operation and partnership working between England, Scotland and Wales, as well as for a co-ordinated approach to issues such as the management of plant-based pests and diseases to continue.
Article 5 will confer powers on Scottish Ministers to promote, develop, construct and operate installations for or in connection with the generation, transmission, distribution and supply of electricity produced from renewable sources and to use electricity produced by virtue of these powers.
The Minister is being generous with his time. With regard to article 5(4), I have two questions. Fossil fuels are defined as coal and natural gas, including substances
“produced directly or indirectly from a substance”
mentioned in this paragraph. What would the situation be with regard to waste incineration for the production of electricity, given that the majority of the waste that is incinerated originated as a fossil fuel? I am thinking in particular of the plastics.
Secondly, the biomass industry has a great effect on the timber industry because, effectively, it removes elements of that industry that previously went into furniture making and that have now gone to biomass. Has the Minister’s Department considered the effect of removing from the timber industry the product that is now intended to go to biomass?
As a former chairman of the all-party parliamentary group on biomass, I can assure the hon. Gentleman that great quantities of the biomass produced are not produced in Great Britain in the first instance. The product that is not used in the timber industry or for furniture tends to be waste product—thinnings and elements of forestry that could not be used anywhere else. I hope that satisfies the hon. Gentleman. The order covers renewable sources of energy, not fossil fuel waste. It does not change the situation in that regard, and fossil fuel waste would not appear to be considered as a renewable energy source.
These powers are currently exercisable by the forestry commissioners in Scotland. When the Forestry Act 1967 is repealed, as it relates to Scotland, it is necessary to transfer these functions to Scottish Ministers to ensure they have the same powers the forestry commissioners have under the current arrangements. The order also makes a number of consequential amendments to the Forestry Act 1967, related statutory instruments and other primary legislation to reflect the removal of the forestry commissioners’ functions in or as regards Scotland.
UK and Scottish Government Ministers and officials have worked closely to ensure this order makes the necessary amendments to legislation covering Great Britain in consequence of the 2018 Act. It represents the final stage of devolving forestry to the Scottish Government. It is necessary in consequence of the 2018 Act and demonstrates the Government’s continued commitment to working with the Scottish Government to make the devolution settlement work. I hope Members will agree that the order is a sensible use of the powers in the Scotland Act 2018 and that the practical result is something to be welcomed.
I thank hon. Members and the shadow Minister, the hon. Member for Glasgow North East, for their valuable contributions. The shadow Minister raised a couple of points. On cross-border issues, arrangements between UK Ministers and Scottish Ministers are provided for in a separate Order in Council, using specific powers in the Scotland Act for that purpose, so there is no confusion over the arrangements. As I mentioned earlier, a memorandum of understanding is being drawn up to ensure that those lines are clearly demarked.
On the salient point from the hon. Member for East Lothian about plastics, the incineration of plastics is not specifically addressed in article 5, which confers broad powers on Scottish Ministers to develop renewable energy installations. This is simply a continuation of the forestry commissioners’ existing power under the 1967 Act. The consequential amendments in the schedule to the draft order simply tidy up UK primary and secondary legislation in consequence of the devolution of forestry to Scottish Ministers.
Although not specifically included, are plastics not specifically excluded, because they originate from oil, which is specifically excluded by the draft order? I am more than happy for the Minister to write to me on that.
I am not aware of whether it is specifically excluded or included for that purpose, but I am more than happy to write to the hon. Gentleman on that serious point, which needs addressing.
The shadow Minister raised electricity generation. That is very much a reserved matter, which is why the draft order, which has been made by the UK Government, is able to confer the power to develop renewable installations. The conferral of those specific functions on Scottish Ministers does not affect the reservation of energy matters set out in article 5.
The Government are absolutely committed to strengthening the devolution settlement for Scotland, and we continue to work collaboratively with the Scottish Government to that effect. I hope the draft order, which completes the devolution of forestry responsibilities to Scottish Ministers, demonstrates that commitment. On that basis—
I am grateful to the Minister for indulging me in my series of questions—I felt it was easier to do things this way than to give a speech. My final point regards the Forestry Commission. It is not losing its legal responsibility, because the draft order will allow it to enter into arrangements with Scottish Ministers. For clarification, where do the Government think that the legal responsibility to the public will lie—with the forestry commissioners, whose powers have been devolved, or with Scottish Ministers?
My understanding is that this is a tidying up of the statute book on the back of the 2018 Act and that it completes the devolution of forestry to the Scottish Government. I hope that that offers some clarity.
On that basis—taking my second opportunity—I commend the draft order to the Committee.
Question put and agreed to.
(5 years, 5 months ago)
Commons ChamberI start by congratulating coach Warren Gatland and captain Alun Wyn Jones on their most magnificent victory in Cardiff on Saturday. Speaking as a proud Englishman, it was a joy to watch the game. There is no better way to kick off Wales Week in London, in which we champion and celebrate everything that is great about Wales, including its rugby team.
The Wales Office works closely with the Department for International Trade on promoting Wales’s trading opportunities. From trade missions to his work with trade commissioners and sitting on the Board of Trade, my right hon. Friend the Secretary of State works continually to create potential both for Welsh exports and for foreign direct investment projects to come to Wales.
I associate myself with my hon. Friend’s remarks, although I preferred the first half.
Many people will have used the M4 this weekend. Given the M4’s potential for promoting international trade in Wales, and indeed in the rest of the country, will my hon. Friend tell me what progress has been made towards honouring the commitment from the 1960s to build the M31 from Reading down to Gatwick Airport, via the M3?
I know that my hon. Friend is a great champion for that project, and rightly so. He is right to raise this important issue. The Department for Transport recognises the importance of cross-border connectivity. It has been gathering evidence to inform the second road investment strategy—RIS2—which will govern investment in England’s motorways and major A roads between 2020 and 2025. Economic growth is one of RIS2’s five stated key aims and will play a part in the appraisal of schemes. It will be published in 2019.
I join the Minister in congratulating the Welsh rugby team on their excellent victory. They are on course for the grand slam this year. The Minister will be aware that REHAU plastics in my constituency, which has traded internationally for more than 40 years, has announced its closure. It will now concentrate its business on the European mainland. Will his Department work with the Welsh Government, myself and local government to try to retain those important trading jobs? They are international jobs, and we need them on Anglesey.
Absolutely. I have a sneaking feeling that rugby might be a running theme throughout these questions. We recognise the importance of REHAU as an employer in the region and on Anglesey, and we will work closely with the hon. Gentleman and with the company to achieve the best possible outcome, most importantly for the important staff who work there.
There are many excellent international trading companies in north Wales, but in order to continue to thrive they need access to the most modern digital infrastructure. What discussions is my hon. Friend having with the North Wales Economic Ambition Board to ensure that growth deal funding is targeted towards improving digital connectivity?
My right hon. Friend is indeed a great champion of north Wales. I recently met that board to discuss its progress in finalising its proposition to utilise the £120 million that we and the Welsh Government each allocated to the deal. Digital infra- structure is currently an underpinning project, but we have set the region a challenge to go even further and to be even more ambitious about what the project can achieve for the region by working closely with a range of partners, including the private sector.
Jim Callaghan, a Labour Prime Minister, brought thousands of jobs to Ford in south Wales. Why is a Tory Prime Minister taking those jobs away?
I politely remind the right hon. Lady that we have record employment in Wales. Tough commercial decisions have been made in recent months, particularly by Hitachi. However, I point to the good economic news in Wales, particularly the record job numbers.
Dydd Gŵyl Dewi hapus for Friday, Mr Speaker. I pay my good wishes to Sam on the sad loss of Paul Flynn. This is the first chance I have had to do that. He was a great man. He actually stood in my constituency in 1974.
In January, Dyson announced the relocation of its HQ to Singapore, Hitachi ended its interest in Wylfa and Airbus said it was prepared to leave Wales in the event of a no-deal Brexit. The Government’s handling of Brexit has been described as a “disgrace” by Airbus’s Tom Enders and a “state of total confusion” by tycoon Sir Martin Sorrell. What message does that send to international investors and traders about trading opportunities in Wales?
If I might politely say so, the hon. Gentleman is being a little selective with his examples. I would point him to the employment figures. The real figures show that foreign direct investment last year created 3,107 new Welsh jobs, which is a 20% increase. I understand why he might want to paint a gloomy picture. Airbus has made it perfectly clear that it does not want no deal. It wants a deal, and the best thing that he and his party could do is support the deal when it comes before the House.
The Government understand that police demand is changing and becoming increasingly complex. That is why, after speaking to all police forces in England and Wales, we have provided a comprehensive funding settlement that increased total investment in the police by over £460 million in 2018-19.
By 2019-20, Gwent police will have seen a 26% cut in its core Government grant compared with 2010-11. Why do this Government keep making it more difficult for Gwent police to keep my constituents safe?
I remind the hon. Gentleman that the 2019-20 settlement provides total funding of up to £14 billion, and it is an increase of up to £970 million on the previous year. I would also politely remind him that the Labour party voted against that increased funding.
We have regular discussions with the Welsh Government about cross-border roads, including the proposed A48 bypass around Chepstow. We know that a bypass could improve journey times between Chepstow and Gloucestershire as well as reduce air pollution, and we look forward to working with the Welsh Government to deliver this vital piece of infrastructure.
There are times when a drive through Chepstow resembles the rush hour in Lagos or Mexico City. Will Ministers therefore do everything that they can to encourage the local authorities in Gloucester, the Welsh Government and the Department for Transport to work with Monmouthshire council to deliver that bypass as soon as possible?
There is no greater champion and voice for Chepstow than my hon. Friend. The Government are dedicated to improving transport infrastructure across Wales, for instance by providing a new relief road. We have abolished the tolls over the Severn, and I know from personal experience on Saturday that Chepstow could do with a bypass.
The hon. Gentleman—who has been incredibly creative in getting his question in under Chepstow—will be pleased to hear that we are continuing to engage with the Department for Transport on this vital project.
Again there is no stronger voice for Wales than that of my right hon. Friend, who has a long-standing interest in Wales. Yesterday I met the Minister with responsibility for defence procurement, my hon. Friend the Member for Pudsey (Stuart Andrew) to discuss the F-35 contract. The recent announcement puts Wales right at the centre of the global F-35 partnership. It is the largest defence programme in history.
It was a great pleasure to visit the F-35 factory in Fort Worth in the summer of 2016, and of course the F-35 has a huge UK content to it, so does my hon. Friend agree that these contracts show the immense contribution being made by the Welsh defence industry to the UK economy and exports overall?
The aerospace and defence industries are in very good health in Wales. In the financial year 2017-18, the UK Government spent £960 million with the Welsh defence industry and commerce; that is up from £946 million. This supports an estimated 6,300 jobs in Wales and the half a billion pound F-35 contract is to be welcomed right across this House.
Will the Minister meet with aerospace businesses such as Tritech, Magellan and Solvay in Wrexham to ensure that in the event of a no-deal Brexit we maximise spend within the UK to benefit our businesses?
I certainly would agree to meet with the aerospace industry. I have already visited a number of companies. I am also committed to holding a roundtable on this very subject and I am more than happy to meet the hon. Gentleman as well to discuss this further.
I thank the hon. Gentleman for his work on this important issue. The UK Government do not anticipate that the RNLI’s decision to replace the all-weather lifeboat with the Atlantic 85 vessel will have an impact on its capability to co-ordinate search and rescue in Cardigan bay.
I thank the Minister for his answer. He will be aware that the decision to remove the all-weather lifeboat from New Quay has caused considerable concern in Ceredigion and further afield. May I ask him to again raise this matter with the Department for Transport and press for detailed reassurances that the removal will not diminish search and rescue capabilities in Cardigan bay?
I am more than happy to work with the RNLI and to meet the hon. Gentleman to discuss his concerns to ensure there is proper and correct lifeboat coverage in Cardigan bay.
(5 years, 6 months ago)
Commons ChamberI congratulate my hon. Friend on raising the Stirling and Clackmannanshire city region deal. I pay tribute to him and to my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) for their role in advocating for this deal across the Government and securing investment for their constituencies. We were delighted that the £45 million UK Government investment was matched by the Scottish Government.
I am pleased that we are committed to funding deals in each of Scotland’s seven cities, including Stirling and Clackmannanshire. That represents a total investment of £1.2 billion by the UK Government. With contributions from our friends in the Scottish Government and other partners, the total figure is even higher. My right hon. Friend the Secretary of State for Scotland has further ambitions, and that is why the Government are rolling out deals beyond the city regions in areas such as Ayrshire, Moray and the borderlands. With further investment from other public and private partners, the total value of these deals amounts to several billion pounds. They represent a fantastic opportunity to give local and regional economies across Scotland a significant, real and transformational boost.
Will the Minister confirm that although it is important that the city deals are taken forward, it is right that the UK Government have committed to extending such deals across Scotland? Moray, which does not have a city, could benefit from a Moray growth deal in the same way as the cities have done.
My hon. Friend is absolutely right in that regard. We are committed to having 100% coverage of Scotland. As he will be aware, a commitment to the Moray growth deal was announced at the Budget. It involves some very exciting projects, including an energy pipeline, employability programmes for service families and a college hub looking at innovation in manufacturing. While the figure has not yet been clarified, the Treasury has provisionally agreed a sum of around £25 million for that growth deal, which I am sure he and other hon. Friends will welcome.
To get back to the Stirling and Clackmannanshire deal, the UK Government are pleased to be supporting the University of Stirling’s international reputation as a centre of excellence for aquaculture, with an offer of investment in new facilities that will not only safeguard the sector in Scotland and Wales—it can be very significant in supporting rural employment in often remote areas—but allow our world-class researchers to develop technologies that we will be able to export around the world.
In speaking about developing the infrastructure at Stirling, which will have an international focus, I of course want to take this opportunity to commend to my hon. Friends the excellent facilities at the Centre for Sustainable Aquatic Research at Swansea University. As the UK Government Minister for Wales, it would be remiss of me not to slip that into this speech about the Stirling and Clackmannanshire growth deal.
We are also supporting the establishment of the international environment centre, which will take full advantage of the natural environment and heritage of the region to bring together academic expertise from across Scotland to explore some of the key challenges of our age.
The region already represents a major draw for visitors, and local partners have been clear about their desire to do even more in that regard. Of course, any visitor to Scotland will know there is nothing more emblematic than tartan, which is why the UK Government are delighted to provide the investment needed to build the Scottish tartan centre. I am not yet aware of a particular Adams tartan. I hope that there will be one, and if I say that loud enough during the debate, perhaps someone will do a bit of research. However, I would be more than delighted to come up when the Scottish tartan centre is open—if my hon. Friend is brave enough, I will even put the relevant tartan on as well. The centre will provide an historical narrative encapsulating key developments in the history and evolution of tartan, along with related themes that will engage with a diverse audience. I am sure that hundreds of thousands of people will flock to his area to view this fantastic centre.
We are doing further work to identify additional projects in the Clackmannanshire Council area, and those will be worth around £8 million, as we have heard. I would like to take this opportunity to congratulate my hon. Friend the Member for Ochil and South Perthshire on everything he has done to help secure that additional money from the Treasury. It is no easy feat wrestling money from the Treasury, so he should be commended.
My right hon. Friend the Secretary of State for Scotland is planning on announcing more details on that deal shortly. As part of the deal, we are pleased to be releasing some surplus MOD land for development in the centre of Stirling, and the Department for Work and Pensions is running a bespoke scheme in Clackmannanshire to help lone parents return to work.
Let me quickly refer to the point made by my hon. Friend the Member for Stirling about the MOD land. At first sight, the land is due to be made available under the defence estates review in 2022, which is well within the 10-year scope of the deal. The office of the Secretary of State for Scotland and the MOD are working together to ensure that the land at Forthside is ready to be released in a fit state.
On my hon. Friend’s other very valid point, I would just like to politely remind him that the UK Government are committed to Scotland—it is not a case of devolve and walk away. As I have said previously, the UK Government have committed over £1.2 billion to support development in Scotland through the city and growth deal programme. That is what I call real commitment.
These investments represent a significant package that will help to transform the economies of Stirling, Clackmannanshire and Scotland. Growth deals should be transformational and show the real benefits that can be brought about when Scotland’s two Governments work together instead of pulling apart—[Interruption.] I agree with the hon. Member for Strangford (Jim Shannon) that we are much better together.
My right hon. Friend the Secretary of State for Scotland signed the heads of terms for the deal in May last year and expects to agree the full deal in the summer. That will herald a 15-year programme of investment and growth that will bring real and tangible benefits to all those who live and work across the region. My hon. Friend the Member for Stirling is right. He wants to see hi-vis jackets and spades in the ground: I am happy to go up there with a spade and break the ground myself if necessary. In my view, the deal will be the engine that drives the whole of Scotland forward.
Question put and agreed to.
(5 years, 7 months ago)
Commons ChamberUniversal credit is available in every jobcentre in Wales. Our welfare reforms are incentivising work and supporting working families, and employment in Wales is at a record high.
Twenty-six per cent. of people in Wales have a disability and 39% of them are in poverty—both the highest proportion in the UK. What assessment has the Minister made of the number of people who lost severe disability premium when they transferred on to universal credit and the impact on those individuals, their families and their communities?
In recent weeks, an assessment has been conducted by the Department for Work and Pensions and the Secretary of State has made it clear that it is vital that we reform to deliver a fair and compassionate welfare system. This is an ongoing piece of work. It is essential that people who have been trapped out of work by a confusing and complex mix of tax credits and benefits are helped into work.
Many organisations in my constituency do great work mitigating the effects of the universal credit roll-out, but it is still causing great hardship. Have Ministers asked the Prime Minister to fully stop the roll-out, or are they simply not standing up for Wales?
My right hon. Friend the Secretary of State for Work and Pensions is fully committed to not rushing the migration of universal credit; she will proceed with the utmost care and attention. As she has announced, managed migration will be piloted this year, involving 10,000 people, following which the Government will report on their findings. Migration beyond the pilot number will not occur until my right hon. Friend has brought legislation back to this House to extend that migration.
The Welsh economy has shown significant progress in recent years. The rate of employment in Wales is at a record high and increased by more than that in any other part of the UK over the last year, with 64,000 more people in work. There is a wealth of world-leading innovation in Wales, with Welsh businesses spending over £450 million on research and development in 2017.
The decision on Wylfa Newydd is a massive setback, not only for Anglesey but for the whole north Wales economy, and the project was a central plank of the north Wales growth deal. When it comes to major infrastructure projects, the Secretary of State has a record of unmitigated failure; he has a kind of reverse Midas touch. When will he start to speak up for Wales in Cabinet? If he is not prepared to speak up for Wales, will he step aside and let someone else have a go?
I can tell the right hon. Gentleman that there is no greater champion for Wales than my right hon. Friend the Secretary of State. However, the hon. Gentleman raises a very serious and important point regarding Wylfa. This does affect the whole region. The Government were willing to offer a significant and generous package of potential support, but despite that, Hitachi decided that the project was still too great a commercial challenge. We are still committed to nuclear sites as part of the UK’s future energy mix, and we will also continue to support the Isle of Anglesey with initiatives such as the north Wales growth deal.
I understand from my colleague Rhun ap Iorwerth AM that, given the economic uncertainty now surrounding Hitachi’s future at Wylfa Newydd, the Welsh Government have indicated that they are prepared to commit further funds to the north Wales growth bid if Westminster makes the same commitment. Will it?
The hon. Lady makes an important point. We are certainly open-minded. Commitments such as this must be project-led. I reiterate that we recognise the significant impact that Hitachi’s decision will have on the region and planned investment, some of which could be co-dependent on the growth deal. We are committing £120 million, as the hon. Lady knows, and we will certainly talk to our partners in Wales. In fact, I am going there next week to talk with Ministers and stakeholders.
I greatly appreciate that the Minister sees the importance of the north Wales growth bid, particularly in relation to the news at Wylfa. It is interesting that the British Government offered Hitachi a one-third equity stake in the £20 billion nuclear power development in Ynys Môn. Now that Wylfa Newydd looks set to be the latest project to join the Welsh infrastructure scrapyard, will the Minister guarantee that his Government will use the previously promised equity to create 850 alternative, permanent and well-paid jobs in north-west Wales?
The hon. Lady raises an important point. We are certainly not abandoning that area of Wales. I reiterate that this was a commercial decision. We are committing £120 million to the north Wales growth deal, which we hope to get over the line as soon as practically possibly. The Government’s decision to agree to take an equity stake, to secure a strike price and to underwrite the debt on that project, was incredibly generous.
Since 2013, we have seen the cancellation of the Atlantic Array wind turbines off south Wales, the cancellation of the Celtic Array wind farms off north wales, the cancellation of the Cardiff-Swansea rail line in 2018, the cancellation of the Swansea bay tidal lagoon in 2018 and—to cap it all, the cancellation of cancellations— the cancellation of Wylfa Newydd last week, which was a £16 billion investment that would have transformed the economy of north Wales. Will the Secretary of State support the establishment of an inquiry, which the CBI in Wales has called for, to uncover why this Conservative Government are incapable of delivering large infrastructure projects in Wales?
The hon. Gentleman seems to miss the fact that these are commercial decisions to put these projects on hold. In terms of Hitachi, it is a suspended project. We will continue to engage with Hitachi regarding options for the site. We are absolutely committed to creating a broad-based, resilient economy through our industrial strategy, and we will continue to work with the private sector, local partners and the Welsh Government to ensure that Wales prospers. I hope that Members across the House welcome the news this week that the employment rate in Wales now matches that of the UK for the first time since my right hon. Friend the Member for Wokingham (John Redwood) was the Secretary of State for Wales.
The Government recognise that transport is a major cost for households and businesses, so it was announced at last year’s Budget that fuel duty across the UK will remain frozen for the ninth successive year.
Despite the excellent fuel duty freeze from the Government, oil companies are still hitting motorists across Wales and the UK by increasing petrol prices hugely when the international oil price goes up but taking a long time to reduce it when the oil price goes down. Will my hon. Friend work with the Secretary of State for Transport and the Treasury to introduce a “pump watch” regulator, as recommended by FairFuelUK, so that there are fair prices for motorists at the pumps?
There is no greater champion for consumers than my right hon. Friend, but we do not believe that setting up a regulator would be justified, given the costs of doing so. This sector, like every other, is subject to the normal competition and consumer protection law. We are committed to passing on savings to commuters and, due to nine years of fuel duty freezes, the average car driver in Wales and the UK will have saved a cumulative £1,000 by April 2020.
Can the Minister confirm that 30,000 low-income families in Wales will lose £2,500 a year as a result of the imposition of the two-child policy? Does he think that that is fair?
The Secretary of State for Work and Pensions has announced that she will not extend the two-child limit on universal credit to children born before April 2017, when the policy first came into effect. That will benefit about 15,000 families, and the decision restores the original intent of the policy, which will give parents in receipt of universal credit the same choices as those in work.
I thank the right hon. Lady for raising this very important issue, and my thoughts are with all those families affected. I recognise her continued and passionate dedication to this issue and to ensuring that we have a health service that is fit for everyone. It is imperative that both the internal and external reviews of maternity services in Cwm Taf are both comprehensive and timely. Those affected will rightly be looking for urgent answers and clear action to ensure improvements in patient care and safety.
Of course. At present, this is a matter for the Welsh Government and for the health board, but we await the findings of the review, and we will act accordingly. In the meantime, the Government will continue to ensure that the NHS has the funding that it requires. I can assure the right hon. Lady that we will work with her to ensure that we get the right outcomes.
(5 years, 9 months ago)
General CommitteesI beg to move,
That the Committee has considered the draft Government of Wales Act 2006 (Variation of Borrowing Power) Order 2018.
As always, Mr Sharma, it is a pleasure to serve under your chairmanship. The draft order will deliver on the commitment that the Government made in the St David’s Day agreement to extend the Welsh Government’s borrowing powers to enable Welsh Ministers to issue bonds to borrow for capital expenditure.
The Welsh Government already have extensive capital borrowing powers. The Wales Act 2014 provided that Welsh Ministers may borrow up to £500 million to fund capital investment. Those powers went hand in hand with the tax powers in the Act, which the Assembly has used to establish the land transaction tax and the landfill disposal tax. They placed fiscal responsibility and greater accountability at the heart of the Welsh devolution settlement. Following the historic agreement with the Welsh Government on the fiscal framework for Wales in December 2016, the Wales Act 2017 doubled the borrowing limit to £1 billion, with an annual limit of £150 million, in anticipation of Welsh rates of income tax coming on stream from April next year.
I am most grateful to the Minister for giving way so early in his speech. Will he give a categorical assurance that the extended powers under our consideration have nothing to do with the Budget announcement on page 66 of the Red Book that tied extra borrowing powers to a specific project in Wales? Will he reassure me that the Welsh Government will be able to utilise the borrowing capacity that comes with those powers as they so wish?
I can certainly give the hon. Gentleman those assurances. The draft order is about adapting the means by which the Welsh Government can borrow, whereas what was announced in the Budget was about the additional amount that will be considered during the spending review.
As the hon. Gentleman rightly says, my right hon. Friend the Chancellor announced in the Budget that at the spending review we will undertake a review of the Welsh Government’s capital borrowing powers and consider whether the borrowing cap should be increased by up to £300 million to support the delivery of a new M4 relief road. I know that many people and businesses have called for improvements to that vital artery of Wales; no doubt they welcomed that announcement.
The draft order is not about changing the amount that Welsh Ministers can borrow, but about providing greater flexibility and choice for the Welsh Government over the sources of borrowing that they wish to pursue. To date, Welsh Ministers have been limited to borrowing either from the national loans fund, which is part of the UK Government, or from commercial banks. The draft order, which is made under section 121(4) of the Wales Act 2014, will extend the means by which Ministers in Wales can borrow, to include bond issuance. It is, of course, a matter for Welsh Ministers to decide which source of borrowing provides the best value for money for Welsh taxpayers at any given time.
I am pleased to note that the Cabinet Secretary for Finance and the Chief Secretary to the Treasury have both approved the draft order. I commend it to the Committee.
I thank all hon. Members for their contributions to the debate. The order delivers the commitment we made in the St David’s Day agreement, to enable the Welsh Government to issue bonds to borrow for capital expenditure. It ensures that the Welsh Government’s borrowing is flexible and sustainable. I am very pleased that we have the support of Her Majesty’s Opposition, and I hope I have answered the point raised by the hon. Member for Carmarthen East and Dinefwr.
In assuming tax and borrowing powers, devolution in Wales has truly come of age, as the devolved institutions become responsible not only for how money is spent in Wales, but for how it is raised. Taken together, these fiscal powers provided by the Wales Act 2014 and the further powers devolved through the Wales Act 2017 place responsibility and accountability at the heart of the Welsh devolution settlement, and pave the way for the Assembly to become a fully-fledged Welsh Parliament. The order provides yet another tool to allow the Welsh Government to support the economy and the people in Wales, and I commend it to the Committee.
Question put and agreed to.
(5 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure, as always, to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Wrexham (Ian C. Lucas) on securing this debate. I know him from my time on the Select Committee on Digital, Culture, Media and Sport, but he probably does not realise that I visited Wrexham for the first time when I was eight, to watch my local non-league team, Goole Town, play Wrexham at the Racecourse Ground in the 1974 FA cup. We managed to get a one-all draw—sadly, we got stuffed in the replay.
With that remark, the Minister made himself what we call in Wales Western Mail Welsh.
I do not think I have, but I am sure it will be on my agenda shortly. I am looking forward to going to north Wales, and I was in Cardiff on the second day of my appointment.
I thank all hon. Members for their contributions, and for their kind wishes on my appointment as Parliamentary Under-Secretary of State for Wales. It is a great honour to be asked to join the Department and to carry on the work of my predecessors. Although I have not yet been in the job a week, I understand and recognise many of the issues that have been raised. Someone said that they are a passionate lot in Wales; that has been exemplified this afternoon, and it is an incredibly important debate to have.
As the hon. Member for Wrexham pointed out, Wales has been a net beneficiary of funding from the EU. By the time the current cycle finishes in 2020, Wales will have received more than £5 billion. The hon. Gentleman’s constituency has benefited from that funding to the tune of more than £14 million between 2005 and 2016. Projects such as the community resource centre in his constituency, Coedpoeth Enterprise and Lifelong Learning Centre, and the west Wrexham learning project have received funding from Europe. It is understandable that they, like other organisations in Wales, both large and small, will want to know what comes next.
The hon. Member for Aberavon (Stephen Kinnock) mentioned that as part of our 2017 manifesto, we set out proposals for a UK shared prosperity fund, which would
“reduce inequalities between communities across our four nations”.
As part of that commitment, we recognise the role that the Welsh Government and other devolved Administrations have played in delivering structural funds over the last 20 or so years. We are absolutely committed to engaging with them as we develop the proposals. The Government have already begun discussions, which will continue, at official and ministerial levels.
Since 2016, we have worked together to agree deals; the Cardiff and Swansea deals are together worth £2.5 billion. We are working on a £120 million deal for north Wales, which I have already had a briefing on and am very keen to get involved in, to see what I can do to help deliver those projects. That was announced in the Budget, as Members will be aware, along with a commitment to start work on a deal for mid-Wales. Those are examples of our Governments working together across administrative boundaries to strike deals that will power economic growth throughout Wales.
The shared prosperity fund provides the UK with an enormous opportunity to redefine the way we invest our money in line with priorities unique to the people, communities and businesses across all nations of our Union, not least Wales. It is right that these groups be afforded the chance to express their views directly to all Governments on the priorities and most effective structures for future funding. Our forthcoming public consultation is an important first step in shaping those discussions, and will ensure that interested parties from across the UK are given the opportunity to inform the debate.
The Minister says that the consultation is upcoming; can he give us the exact date?
This debate is a starting point, but the consultation will begin before the end of the year. It will be for others in Government to announce the date, but given that we are halfway through November, it is probably easy to work out that the hon. Gentleman will not have long to wait for the consultation to begin.
I am not criticising the Minister, because he has only been in the job a short time, but it is the duty of Wales Office Ministers to stand up for Wales. We are having this debate to put pressure on him, so that the Welsh voice is heard loud and clear in this debate. It is not for others to decide; it is for Government to decide, and he is our voice in that Government.
I completely agree. I see myself as a champion for Wales in Westminster. That is incredibly important and must be my priority. I cannot tell the hon. Gentleman the exact date, but I can say that it will be this year, which indicates that it will be incredibly soon. I hope he takes me at my word when I say that the consultation is about to start.
Given the significance of the shared prosperity fund, it is right that questions about the size, structure and priorities for investment develop as we approach next year’s spending review, which will determine the amount of money that will be discussed.
On the spending review, should we be concerned that it seems that responsibility for this fund has been given to the Ministry of Housing, Communities and Local Government, rather than the Treasury? Might that suggest that it is not as big a pot of money as we would hope?
I certainly do not write the comprehensive spending review—well, not yet. I ask the hon. Gentleman to bear with, to coin a phrase. I do not think he has anything to be concerned about in terms of MHCLG being involved in this process—it is only right that it be involved.
In the time I have left, let me turn to specific points raised by hon. Members. In his eloquent speech, the hon. Member for Wrexham spoke passionately about his constituency and his area of north Wales. He asked whether the same rules would apply across the UK. We will absolutely respect the devolution settlement and work with the devolved Administrations. As I said, we are committed to consulting before the end of the year—in the next few weeks—and people will have that opportunity to set out their views on the fund.
The hon. Gentleman rightly commented that the system has not always worked as well as he had hoped. He said that investments had not always delivered the expected return in gross value added terms, that some EU funding had not worked particularly well for Wrexham, and that there had been a bit of a missed opportunity. That is absolutely right. That is why we should have this debate, and why we should all contribute to the consultation.
The hon. Gentleman and the hon. Member for Aberavon, whom I thank for his work on the all-party parliamentary group on post-Brexit funding for nations, regions and local areas, said decisions should be made locally. They both made very valid points in that respect. In my view and that of the Government, EU exit provides an excellent opportunity to reconsider how funding for growth is delivered across the UK. The consultation will be a great opportunity to start that conversation.
The hon. Member for Ceredigion (Ben Lake) and others asked when we would publish the details of the fund. As I said, we will do that in the next few weeks, before the end of the year. We are absolutely committed to that. That will give everyone across the UK the opportunity to contribute their views, and to help those views to form Government policy on this issue. Decisions on the actual spending will be made in the spending review next year.
I would have liked to respond to one or two other hon. Members, but I want to give the hon. Member for Wrexham the opportunity to respond to the debate. I thank everyone for contributing. We want an economically strong Wales in a prosperous United Kingdom. Working alongside the Welsh Government through the shared prosperity fund, we can ensure that becomes a reality.
I will give way to the Minister if he wants to give me that commitment.
The hon. Gentleman will appreciate that the exact amount must be considered as part of the comprehensive spending review in due course.
It is pretty fundamental that we do not want Wales to lose out. I think I speak for everyone who participated in the debate when I ask the Minister to convey to the Government, on behalf of Wales, that the sum must not be less than it is currently. As we heard, there are different views about how the fund—
(5 years, 9 months ago)
General CommitteesBefore I call the Minister to move the motion, it is rather warm in here today, so colleagues may remove their jackets, if they so wish.
I beg to move,
That the Committee has considered the draft Tax Collection and Management (Wales) Act 2016 and the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Consequential Amendments) Order 2018.
It is a great pleasure to serve under your chairmanship, Mr Pritchard, I think for the first time. It is also a great pleasure, and indeed an honour, to serve in my first debate as a Wales Office Minister. I am of course a proud Yorkshireman, as most people know, but at heart I know that there are many similarities between the great county of Yorkshire and the great country of Wales. Both have historically been centres of heavy industry, before transforming into modern, vibrant economies. Both are home to rich cultures, beautiful countryside and great county cricket clubs.
I assure the Committee that, regardless of where our constituencies might be, Conservative Members want to see a strong Wales within a strong United Kingdom—I am sure that Opposition Members feel exactly the same. I am determined to work with the Secretary of State for Wales to deliver just that.
The draft order makes changes to UK legislation arising from the National Assembly for Wales’s Tax Collection and Management (Wales) Act 2016 and its Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. As the Committee will no doubt recall, the Wales Act 2014 implemented the vast majority of the recommendations of the Silk commission’s first report to devolve tax and borrowing powers to the National Assembly for Wales and to Welsh Ministers. That included powers to replace stamp duty land tax and landfill tax in Wales, as well as the creation of Welsh rates of income tax.
The Wales Act 2014 represented a significant moment in Welsh devolution, enabling the Assembly to legislate to establish the first specifically Welsh taxes in almost 800 years—a land transaction tax and a landfill disposal tax—and the Welsh Revenue Authority to collect and manage the new devolved taxes. I am pleased to note the positive collaboration between the UK and Welsh Governments to manage the transition to the devolved taxes, which came in on 1 April. The Government continue to report annually on that work, and the fourth report on the implementation of the financial provisions of the Wales Act will be presented to Parliament next month.
The 1 April was also significant as the date on which the new reserved powers model of devolution for Wales, put in place by the Wales Act, came into force. The Act further demonstrates the Government’s firm commitment to devolution. Alongside the new model of devolution, the Act devolved further powers that can make a real difference to people’s lives in areas such as elections, transport and natural resources.
The Minister is talking about a significant date, 1 April—indeed, it could be—and about the Welsh Revenue Authority. Obviously, the new authority will have to make financial predictions based on a whole series of measures, including the taxes in the draft order. Does he therefore find it extraordinary that the Welsh Government have not been given sight of the Brexit withdrawal agreement, given the impact that it will have on Welsh finances and the Welsh Revenue Authority’s ability to raise revenue?
The Welsh Government are not the only organisation not to have had sight of that documentation as yet. I am sure that they will be brought into those discussions at the earliest opportunity.
The Minister says that, but today we were told that the Chief Minister of Gibraltar has been given sight of the agreement. Is that not extraordinary? The Minister talks about a commitment to devolution, but the Welsh and Scottish Governments have not received a briefing.
Order. I allow quite a lot of latitude, and obviously these are historic times, but given the shortage of time—90 minutes in total—Members need to keep their remarks within the scope of the legislation, as you well know, Mr Doughty. You have been here long enough.
It is unlike the hon. Gentleman to raise the European Union withdrawal agreement, but I commend him for his canny ability to weave such remarks into a debate on the Welsh Revenue Authority and its land transaction tax capabilities.
The order, made under powers in section 150 of the Government of Wales Act 2006, makes consequential provisions on the establishment of the Welsh Revenue Authority and the creation of a land transaction tax. It has four provisions. Article 2 inserts the new Welsh Revenue Authority into schedule 1 of the House of Commons Disqualification Act 1975, so as to disqualify the chairperson and non-executive members of the WRA from being Members of this House. That puts the WRA on the same footing as Her Majesty’s Revenue and Customs in that respect. Following the devolution of powers over Assembly elections in the Wales Act 2017, whether the chairperson and non-executive members should also be disqualified from being Members of the National Assembly for Wales is, of course, a matter for the Assembly.
Article 3 inserts the WRA into the list of public bodies in part 6 of schedule 1 to the Freedom of Information Act 2000, thereby providing a right of access to information held by the WRA. In doing so, the order brings the WRA within the definition of “Welsh public authority” under that Act.
Article 4 inserts a reference to the WRA into schedule 1 to the Public Interest Disclosure (Prescribed Persons) Order 2014, ensuring the same protection for whistleblowers who contact the WRA under the Employment Rights Act 1996 as that afforded to whistleblowers who assist HMRC.
Finally, article 5 inserts a reference to the land transaction tax into regulation 45 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Under those regulations, HMRC is required to maintain a register of the beneficial owners of certain trusts. The amendment provides that those reporting requirements apply to trusts that are liable to pay land transaction tax in Wales.
The order demonstrates the Government’s continued commitment to work with the Welsh Government to deliver effective implementation of devolved taxes in Wales. In assuming tax and borrowing powers, devolution in Wales has truly come of age, as the devolved institutions become responsible not only for how money is spent in Wales, but for how it is raised.
I welcome the Minister to his post. Before he concludes his remarks, can he reassure the Committee that the Welsh Government are happy with the legislation as drafted?
I have not had that conversation directly, but I understand that the Welsh Assembly has been very much involved in the drafting of the order, so I will make that assumption. The hon. Gentleman will appreciate that I have not had my feet under the table for very long.
Following the implementation of Welsh rates of income tax, the Assembly will be responsible for raising more than £2 billion in tax revenue, which is around 15% of the Welsh block grant. Those fiscal powers, together with the powers devolved through the Wales Act 2017 and the fiscal framework, pave the way for the Assembly to become a fully fledged Welsh Parliament. I commend the order to the Committee.
I thank the hon. Gentleman for his valuable contribution. The order provides for a number of consequential changes to UK law as a result of Assembly Acts to establish the Welsh Revenue Authority and a land transaction tax in Wales. I welcome the Opposition’s support. I cannot possibly describe my first run-out as Minister as a love-in, but it was as collaborative—
It certainly was not a kicking. When I played rugby in Cardiff against the Welsh Assembly a couple of years ago, that is exactly what we got. I welcome the collaborative approach of the hon. Gentleman, and between us and the Welsh Government to manage the transition to devolved taxes. The order is further evidence of that approach. We will continue to work constructively with the Welsh Government in preparing for the introduction of Welsh income tax rates from next April. These powers provide substantial levers for the Welsh Government to support the Welsh economy and to deliver a mature devolution settlement for Wales. I commend the order to the Committee.
Question put and agreed to.
(7 years, 10 months ago)
Commons ChamberIn response to the right hon. Gentleman, the point that I made was very simple: we press for proper investigations into what has happened in those incidents before we reach a decision or a conclusion. We have a very strong relationship with Saudi Arabia, which is important for this country in terms of dealing with counter-terrorism and a number of other issues, but what matters, when incidents happen about which there is concern, is that they are properly investigated.
I thank my hon. Friend for raising that issue. I am sure that he is not the only Member of the House who has had that experience, and he is certainly not the only person who has been affected, as Members will know from their constituency mailbags. The Consumer Rights Act 2015 introduced a review of online ticket sales. Professor Mike Waterson’s independent report on online secondary ticketing makes a number of recommendations, including some whereby the industry itself could better protect itself from the problem. The Government will look very carefully at those recommendations to see what can be done to address the issue.