(8 years, 6 months ago)
Commons ChamberMy hon. Friend asks a good question. Many of our reforms of the state pension are designed to make things simpler and less confusing for people. Since the new state pension was introduced in April, everyone has been able to get a personalised state pension statement, based on the new rules, and there is a new online service, “Check your State Pension”, which offers a quick and accessible way for people to access information about their state pension.
I welcome the Secretary of State to his first DWP questions. He has started today by trying very hard to strike a different tone from his predecessor. He said in an interview last week that he wanted his Department and his Ministers to understand the “human impact” of their policies. What does he think the human impact will be of his plans to cut £1.2 billion from disabled people throughout the next Parliament? What does he think the impact is for the 500,000 people who are set to lose £1,500 a year in employment and support allowance?
I thank the hon. Gentleman for the kind words with which he started his question. He obviously was not listening to the earlier questions on this subject, because at the end of this Parliament we will be spending more than at the beginning of this Parliament on supporting disabled people. We will be spending around £50 billion supporting disabled people—far more than was ever spent under the previous Labour Government.
The Secretary of State seems to have forgotten already that in his very first speech he said that behind all those statistics are human beings. Disabled people will be disappointed that today he hid behind statistics once more and that he will not reverse the ESA cuts. Others will be disappointed that he refused today to address the concerns of women born in the 1950s, and still others that he has refused to address the cuts to in-work benefits under universal credit. In what way is the Secretary of State different from his predecessor?
We are a Government who have helped deliver the changes that have seen a huge fall in workless households. Nearly half a million more children are growing up in a home seeing a mum or a dad go out to work. There is no reason to change policies that are changing things for the better for those who have least in our society.
(8 years, 8 months ago)
Commons ChamberI start by saying “Croeso a llongyfarchiadau”—welcome and congratulations —to the new Secretary of State. He and I have history at the Wales Office, and I look forward to renewing our relationship. On the basis of today’s statement at least, it looks like it will be a bit more productive than the one I had with his predecessor. I thank him for advance sight of the statement and welcome the vital and wholly inevitable U-turn on the cuts to PIP.
The way this mess has been handled is a textbook example of Tory social security policy—long on divisive rhetoric and totally lacking in competence and compassion. We had the lies before the election; the sham consultation—I welcome the new Secretary of State saying he will listen to the disabled, but the Government should have listened to them in the consultation, when 95% told them not to go ahead, instead of listening to just 11 respondents and putting it through—the announcement snuck out on a Friday night; the briefings before the Budget, the spin afterwards, the extra £20 million set aside to fight the appeals; but, above all, the deliberate targeting of disabled people to pay for tax cuts in the Budget, as exposed so mercilessly by his processor, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), at the weekend.
However entertaining it has been watching this Tory civil war over the weekend, what really matters are the 640,000 disabled people who have been in the firing line of the Prime Minister’s Budget, so on their behalf I sincerely thank the new Secretary of State for doing the right thing and reversing the cuts to PIP.
But however welcome that decision, the manner in which it came about leaves many questions unanswered and strips all credibility from the claims of this Government and this Prime Minister to protect all the people of Britain. Never again can he or this Government claim that we are all in it together. Never again can he claim to lead a one nation Government, because the right hon. Member for Chingford and Woodford Green has left that claim in tatters. Speaking from the heart of the Tory Government, he said that their “unfairness” is damaging the people: it is attacking the poor and dividing our nation.
So my question, quite simply, to the new Secretary of State is: does he agree with his predecessor about the fundamental unfairness of those welfare policies and is that why he is reversing the PIP cut today? Can he reassure us that those cuts will be fully reversed? Can he reassure us that changes made to the points system under PIP will be dropped and that full support will be maintained for people who need, for example, help going to the toilet or getting dressed in the morning? Can he reassure us that this is a real U-turn, not another sleight of hand or sham, as we saw with tax credits? Disabled people need to know definitively today that they are being protected, so can he rule out any further cuts to the incomes of disabled people?
I presume the Secretary of State cannot, because I read in the statement that he refers to the “substantial savings legislated for by Parliament two weeks ago”. He did not say what he meant by that, but I can tell the House what he meant. What he meant were the cuts to the education and support allowance work-related activity group budget—£30 a week taken away from the best part of half a million people, who will lose £1,500 a year. We know the Secretary of State’s attitude to that, because he voted for it two weeks ago and he defended it just last week. In fact, on a blog—[Interruption.] Hon. Members would do well to listen to this: they need to know about their new Secretary of State. In a blog written last week, he said that those who were opposed to the ESA WRAG cut were engaged in mere “political banter”. Well, there is nothing fun for disabled people—it is not “banter”—about losing £1,500 a year out of their fragile incomes. So can the Secretary of State be serious and tell us: did he mean the ESA WRAG cut? Is there no chance that he is not going to agree with his predecessor that that, too, is unfair and reverse it, as he should?
Thirdly, could the Secretary of State confirm for us—and correct the errors made once more from the Dispatch Box by his hon. Friend the Financial Secretary earlier today—that spending on disabled people in this country is not increasing in real terms, as was alleged, but declining? The independent Institute for Fiscal Studies confirmed last week that spending on PIP and DLA is falling in real terms by 3%, or £500 million. In fact, if we take into account all disabled benefits, as the House of Commons Library has done, in analysis for the Labour party to be released later today, we see that spending has fallen by 6%, in contrast with the 60% increase in spending on disabled people that we saw under the last Labour Government—6% down under the Tories; 60% increased for the disabled on our side.
Finally, I welcome what the new Secretary of State had to say about starting a new conversation with the disabled. He has made a good start with a U-turn, but will he decide now that he is going to put an end to the divisive rhetoric that has characterised this Government’s approach over the last few years? Will he stand up for a fair and progressive renewal of our welfare state—the system of support that should be there for us all when we need it?
The new Secretary of State stands at a crossroads today. He can choose the path trodden by his predecessor —to cut the incomes of the disabled; to defend the illegal bedroom tax; to take money from working families through universal credit—or he can choose the path less trodden by Tory Secretaries of State. He could reverse the ESA cut; he could scrap the hated bedroom tax; and he could truly speak in favour of disabled people, the poor and the vulnerable in our society.
Among the many extraordinary truths spoken by the Secretary of State’s predecessor yesterday was the shameful admission that these two nation Tories decided to cut people’s benefits because they did not think that those people would vote for them. It was extraordinary, it was shameful, and the new Secretary of State for Work and Pensions will have a hell of a job on his hands to wash that stain out.
Let me begin by saying “diolch yn fawr” to the hon. Member for Pontypridd (Owen Smith) for his welcoming remarks. It is good to renew the relationship with him that culminated so happily, for me at any rate, on 7 May last year, when he had to crawl out and explain why the Labour party had lost Cardiff North, Vale of Clwyd and Gower. I am very happy to be partnered with him across the Dispatch Box once again. He has lost none of his usual spiky style, and he retains what I described, when he was shadow Welsh Secretary, as a rather “pantomime anger” approach.
The hon. Gentleman asked me about my right hon. Friend the Member for Chingford and Woodford Green . I was, and am, very proud to have served in a Government with my right hon. Friend, who has a superb record as a social reformer. His record over the last six years compares, any day of the week, with the record of Labour Governments when it comes to welfare reform.
There was a time when Labour Members used to speak the language of welfare reform. There was a time when they liked to pretend that they understood that a benefits system that traps people in poverty is not a benefits system based on compassion and fairness. The time when they talked that language was a time when the British public considered them to be a serious prospect to be voted into government. That was a long time ago.
I have no intention of repeating my statement word for word. I thought that I had been crystal clear about the fact that we are not proceeding with the proposed changes in the personal independence payment. I am sorry if the hon. Gentleman was not listening carefully enough. We are increasing real support for disabled people, in real terms, over the lifetime of this Parliament, and the hon. Gentleman should not stand at the Dispatch Box and say that we are not, because it simply is not true.
(9 years, 9 months ago)
Commons ChamberIt is a great pleasure to wind up this important debate on behalf of the Opposition. I join others in congratulating the hon. Member for Montgomeryshire (Glyn Davies) and my hon. Friend the Member for Ynys Môn (Albert Owen) on securing the debate, and I thank the Backbench Business Committee for allowing it.
We have heard many excellent and diverse speeches, to which I pay tribute. The right hon. Member for Clwyd West (Mr Jones) spoke without a trace of irony of his desire for a reduction in the level of VAT applying to Welsh tourism businesses—failing, of course, to mention that he was a member of the Government who raised the level of VAT applying to tourism and, indeed, to everyone in Wales. However, he spoke extremely well about Wales, with great passion and conviction.
I pay tribute to the hon. Member for Ceredigion (Mr Williams), who spoke mainly about the tourism and farming industries in his part of Wales. I also pay tribute to the hon. Member for Monmouth (David T. C. Davies), the Chair of the Select Committee, who spoke with his customary verve and chutzpah, and, with his customary diligence, managed to reprise the “flat earth” speech which is so dear to me and which we have heard so many times in this place. My hon. Friend the Member for Newport East (Jessica Morden) spoke eloquently and passionately about the realities of the world of work in Wales, and my hon. Friend the Member for Bridgend (Mrs Moon) spoke about the problems of heavy industry and remediation of the open-cast works in her constituency and others in south Wales. I hope that when we, as a Labour Government, succeed the present Government, we will pursue that issue with great vigour.
Let me also pay tribute to the Members who are retiring from the House. The right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) is always—well, perhaps a little less so today—a courteous and wholly accurate contributor. [Hon. Members: “Oh!”] I shall explain what I meant by that later. In fact, the right hon. Gentleman is always courteous in contributing to the life of the House. He will be missed when he retires from this place, but I am sure that he will continue to serve Wales extremely well, and I count him as a friend despite our slight contretemps today.
The speech made today by my right hon. Friend the Member for Torfaen (Paul Murphy) was heard with the usual deference and respect, owing to the experience and sagacity that he has brought to his role. He has been a noble and excellent servant of his community, his party and the House during his long time here. He has twice been Secretary of State for Wales, and he has been a great friend to Wales and to me. I know that everyone in the House will join me in paying great tribute to him.
Along with my hon. Friend the Member for Ynys Môn, my right hon. Friend drew attention to what an important event this is. It is, in effect, the St David’s day debate, although it is not actually taking place on St David’s day as it has in the past. The debate is important because it puts Wales in the spotlight, at the heart of our national conversation in our national United Kingdom Parliament. It is important because we are of course a minority nation of just 3 million people among 60 million, and there is always a danger that, as a minority part of the UK state, our voices are drowned out in the babel of voices from other parts of the UK, in particular of course the lion’s share of people who live in and come from England. This Parliament is in institutional terms the greatest expression of this United Kingdom. My right hon. Friend the Member for Torfaen spoke for me and many on the Opposition Benches, and indeed for many on the other side of the House, when he expressed his concerns about the way in which the voice of Wales has been diminished and is at risk of being diminished to an even greater extent as we move forward. The Government have, I fear, played fast and loose with some of the constitutional arrangements in this country, and have engaged in attacks on parts of this country, notably Wales, as a proxy for attacking Labour, and have failed to appreciate the lasting damage they are doing, and will continue to do if they persist with these attacks, on the social and economic union of Great Britain, the most effective and successful social, political and economic union ever created in the world. That is a theme I intend to return to later.
First, I shall do two simple things: I want to reflect on how the last five years of this Tory-Liberal coalition have impacted on Wales—on our people, our prosperity and our public finances; and I want to reflect on how the relationship between Wales and the rest of the UK has evolved under it, both in terms of the business of government and the attitudes of the Welsh people to the governance of our country.
It may have escaped your notice, Mr Deputy Speaker, and it certainly escaped the notice of many people in Wales, that the Prime Minister has been reflecting on the very same theme in this last St David’s week of this Parliament. Perhaps because he was admonished by the Secretary of State, along with his other Cabinet colleagues, for speaking ill of Wales—told to mind his language when talking about the Land of our Fathers—the Prime Minister has been love-bombing Wales in the last week. He came to Cardiff at the weekend to speak at the Tory party conference, singing Sam Warburton’s praises and resisting, I am glad to say, even a glimmer of gloating at the fact that we lost to the English. Then he hosted the St David’s day reception on Monday, which I was unable to attend. I think I am right in saying that it is the first St David’s day reception—the first for a long while—that the Conservative Prime Minister has held at No. 10. [Hon. Members: “More than one!”] If I am wrong, I happily withdraw that. It is certainly the first one to which I and other Labour Members have been invited, shall we say? So it was a pleasant surprise to receive the stiff card, but I am afraid I was unable to attend. Obviously Conservatives have previously been invited, but we were not.
Throughout this period of love-bombing the Prime Minister has been looking back at the relationship between his Government and Wales. Some of it has been pure fantasy. In one speech he was musing about the prospects of Tory candidates winning seats in the valleys, ousting sitting and prospective Labour Members and wishing our candidates a cheery “da iawn” on coming second. The Prime Minister, I am told, even had to have lessons in pronunciation—
The Secretary of State shakes his head, but, as he ought to know, the speech was released to the media accidentally with the “da iawn” included in it and some suggestions as to how the Prime Minister ought to pronounce that, but if he thinks there is any prospect of Tories in the valleys ousting our Members I have another bit of Welsh for him: “Yn dy freuddwydion,” which means “In your dreams.”
I would accept that, as a native English speaker and a failed Welsh learner. I am still trying, although I have not reached the same standards as some, but I think that was a fair attempt at “In your dreams.”
Other examples from the Prime Minister have been pure comedy gold—not weak gags like that. We have had some excellent examples from the Prime Minister. He channelled his Welshness in trying to come up with a nickname for the Secretary of State. There is a great tradition of nicknames in Wales—Dai the Milk, Evans the Coal, and we even had Jones the Jag at one point in this place—but so impressed was the Prime Minister at the way in which the Secretary of State has warmed to devolution, indeed undertaken a damascene conversion, I am told that he referred to him as being known now in Tory circles as “Stevolution”. It has a certain ring to it, doesn’t it? I am not sure that it is the ring of truth, however. I am not entirely persuaded that he is now so devo-friendly that he could be known as “Stevolution” in Tory circles.
What certainly does not have the ring of truth are some of the other claims that the Prime Minister has been making on behalf of the Tories. He claimed this week that it was the Tories who brought Pinewood studios to Wales, despite the fact that the UK Government had nothing to do with it—
Well, I am terribly sorry, but I have read the Prime Minister’s speech, and that is precisely what he said, despite the fact that that was nothing to do with the UK Government. It was delivered entirely by the Welsh Government while this Government were slashing arts funding.
The Prime Minister also claimed that the Tories were responsible for Hitachi rebuilding Wylfa power station, despite the fact that it was of course the last Labour Government who signed the contract for that new generation power station. He even claimed credit for Airbus making wings for the A380 in Wales, despite the fact that the company has been making aircraft at Broughton since the second world war. The most shameless in this series of porkies was the suggestion that the Tories had secured the funding for S4C, when in truth they had cut it by a third.
The shadow Secretary of State was doing really well up to this point, but he has now let himself down. The important point that the Prime Minister was making when he referred to all those positive things that are happening in the Welsh economy was not that politicians are taking the credit; he was giving the credit to business. That is the crucial difference between our party and the hon. Gentleman’s party: we praise business; Labour attacks it.
I would fully accept that, were it consonant with the facts. The Prime Minister actually said in his conference speech, after listing all those achievements:
“We need to tell everyone who did all this…it’s us.”
This clearly is not true.
A bigger truth is that the Tories have done precious little to help the economy of Wales, but they have done plenty to hinder it. The people of Wales know that. When they hear the Secretary of State and the Prime Minister claiming credit for creating jobs in Wales, they know that 90,000 contracts or jobs in Wales, not 35,000 individuals, but that might also be right—[Interruption.] No, I said “jobs” yesterday. The Secretary of State should read the Hansard. They know that too many of those jobs are Tory-style mini-jobs involving zero-hours contracts, zero security, low wages and low productivity. They also know that a quarter of Welsh workers earn less than the living wage. Wales has the lowest disposable incomes in the UK.
The people of Wales know that these facts give the lie to the notion that there is a Tory-led recovery, as does the fact that we are £68 billion short on tax receipts and spending £25 billion extra on social security. The price of this failure in Wales under the Tories is a tenfold increase in the volume of people using food banks and £1,700 less in the pockets of Welsh families.
In stark contrast, the Welsh Labour Government have shown that they can get Wales working again. Jobs Growth Wales, designed and built in Cardiff, has got 17,000 young people back to work, showing that local solutions with bespoke ideas can deliver jobs in Wales. So it is inexplicable that the Tory party—the “party of real devolution”, as I am told it now calls itself—is still refusing to devolve the Work programme to Wales, as Labour will when we win in May. Inexplicable, too—to many in Wales—is why fair funding for Wales is being promised only if Wales agrees to raise taxes.
Last week, the Welsh Secretary made some important announcements about his Government’s intentions to take forward the recommendations of the cross-party Silk Commission if—heaven forefend—they are back in government next time. The Opposition agree with many of those extra measures. Putting the Welsh settlement on to the same statutory footing and making the Welsh legislature a permanent part of the UK constitution are proposals that we can agree on. We also agree with proposals to give powers to Wales over elections and energy, and additional powers over ports and marine matters. Indeed, we said all those things first. But we will go further. We will give Wales powers over policing, which is why I was disappointed at the mischaracterisation of Labour’s position by the right hon. Member for Dwyfor Meirionnydd. I am sure the Secretary of State will recall our position during those talks, which was, “Reserved and then announced at the party conference for Labour in Wales.”
Lastly, fair funding for Wales was one of the most important aspects of the talks. It is disingenuous of the Secretary of State now to talk about delivering fair funding, given that his Government have cut £1.5 billion from the funding for Wales and he knows that their plans to cut funding to the rest of the UK back to the levels of the 1930s will have a deeply damaging effect on Wales. Cutting spending back to the level it was when the NHS was just a glint in Nye Bevan’s eye would be devastating for Wales. So we agree with the Secretary of State that there should be a funding floor in Wales, but we want to see the detail and to know precisely where they will set that floor. Only then will the people of Wales trust this Tory Government—
(9 years, 9 months ago)
Commons ChamberMy hon. Friend makes an important point. He knows that I meet Welsh Government Ministers frequently to discuss how we can secure the economic recovery for Wales, because it is a shared enterprise across the two Administrations: they know the efforts that we have made to create a strong foundation for a business-led recovery in Wales, and we need them to play their part in helping to bring unemployment down across Wales.
May I begin by wishing you a belated happy St David’s day, Mr Speaker, and all Members of the House and by adding my thanks to all the Welsh Members of all parties who are retiring, but particularly my right hon. Friends the Members for Torfaen (Paul Murphy) and for Neath (Mr Hain), both distinguished former Secretaries of State who have served Wales extremely well?
We have heard an impressive array of statistics from the Secretary of State this morning, but will he set aside the spin for one moment and tell us what has really happened to the jobs market in Wales on his watch? How many of those new Tory jobs in Wales are on zero-hours contracts and pay a pittance in wages?
Let us remind ourselves of what we inherited in 2010. Under the previous Labour Government, unemployment across Wales had increased by 80%, youth unemployment had increased by 75% and, worst of all, long-term unemployment had increased by more than 150%. That is a scandalous record on jobs in Wales. I am proud to be part of a coalition Government who have created the right foundations for a business-led recovery to turn that around.
I think workers in Wales are heartily sick of this Tory propaganda. The truth is that of the 100,000 new jobs in Wales, as the Office for National Statistics said last week, 90,000 are zero-hours contracts paying, on average, £300 less per week than full-time jobs. As the Institute for Fiscal Studies said this morning, the average family incomes of workers in Wales have declined under this Government. Why does the Secretary of State not say the one thing he can to workers from Pwllheli to Pembrokeshire that would give them hope: vote Labour?
If the hon. Gentleman thinks that is any kind of boon for the Welsh economy, I point him to the opinion poll conducted by BBC Wales which this morning shows that a majority of voters across Wales, even in the Labour heartlands—from Rhondda to Cynon Valley, from Caerphilly to Pontypridd—prefer my right hon. Friend the Prime Minister to remain as leader rather than the Leader of the Opposition.
(9 years, 10 months ago)
Commons ChamberI am not familiar with that facility, although I am familiar with Wind street—from what I have read, not from what I have experienced. However, we will certainly look at that project in some detail and I will raise the matter with Health Ministers.
Since we last met, the Secretary of State has warned his Cabinet colleagues to mind their language when talking about the NHS in Wales. He said:
“I want them to take care how they speak about health services in Wales…I don’t want to hear anyone talking about a second-class NHS in Wales”.
Is he therefore disappointed that the Prime Minister has overruled him in continuing to bad-mouth the Welsh NHS?
I am surprised to hear this from the hon. Gentleman. We on this side of the House are not shutting down the debate on, and scrutiny of, the performance of the NHS. We stand on the side of patients in England and in Wales, and it is quite wrong of him to act as some kind of cheerleader for the Labour party by seeking to shut down the scrutiny and the debate on the Welsh NHS.
I take it from that answer that the Secretary of State is disappointed that the Prime Minister has overruled him. I believe that the Prime Minister has done that because talking about the Welsh NHS is his favourite way of distracting people’s attention from the failings of the NHS in England. Given that there is a crisis in hospitals near the border in Telford, in Shropshire, and in Cheltenham and Gloucester, where Welsh patients are traditionally sent, is it not now time for the Secretary of State to renew his efforts to get the PM to stop talking about Offa’s Dyke as though it were a line between life and death?
On the subject of health, there are two apologies that we need to hear from the Opposition today. The first is an apology from the hon. Gentleman on behalf of the Welsh Labour party for the way in which its Ministers in Cardiff have run the Welsh NHS into the ground. The second is from the Leader of the Opposition for his disgraceful and inappropriate suggestion that the NHS should be “weaponised”.
(9 years, 11 months ago)
Commons ChamberMy hon. Friend is exactly right and characteristically articulates his point better than anybody else in the House could. Devolution got stuck. The settlement meant that the Welsh Government were essentially a spending Department with no real responsibility for raising money—in fact, local authorities or parish councils probably had more ability to raise revenue than the Welsh Government. The Bill is all about letting Welsh devolution take the next step forward, which is about fiscal devolution, giving responsibility and enhancing accountability to create a more meaningful relationship between the Welsh Government and the people who elect Assembly Members and Welsh Ministers.
The Secretary of State speaks of the incentives that these powers would give to the Welsh Government. Will he be clear, as his predecessor was, as to how they ought to deploy those incentives? His predecessor thought that they should cut taxes in Wales to lower rates than in England. Does he agree?
I do not dismiss the risk that the hon. Gentleman has outlined, but I think he exaggerates its impact on Wales. Alongside any perception of risk in relation to such fluctuations, there is a powerful opportunity for Wales to take greater control over wealth creation inside the nation of Wales. That is an exciting opportunity for the Welsh people, and it represents the next stage of devolution.
This is all about accountability. The former US President Harry Truman famously had on his desk a card that said, “The buck stops here.” I want to see a Welsh Government who stand up proudly and say, “The buck stops here” rather than “The buck is passed there.” That is what this Bill is all about: it creates that enhanced accountability and enhanced responsibility. I repeat my challenge to the First Minister and the Welsh Government: as soon as this Bill receives Royal Assent, take steps to call the referendum and do it as soon as possible. Let us seize the new tools and powers in this Bill with both hands and move forward.
May I be the second Member of this House to congratulate the Secretary of State on becoming Welsh politician of the year? I think the whole House would agree that anybody who can move from describing devolution as “constitutional vandalism” to being its most ardent supporter on the Government Benches deserves to have his political footwork duly recognised.
These amendments to the Wales Bill best exemplify the damascene conversion that the Secretary of State and his party have undergone on the devolution cause, because they relate to the devolution of income tax varying powers. Just as the Secretary of State used to denounce devolution and has now changed his mind, the Government have performed—he understated the extent of this—a handbrake U-turn on the lockstep.
For clarification, the shadow Secretary of State has accurately reported a quote of mine that appeared in an article in 2007, but he should do full justice to the article by adding that in it I set out exactly the same case for fiscal devolution that I have set out today. I have been entirely consistent over a long period as to how fiscal devolution would enhance the devolution settlement for Wales.
I am happy to agree that that is how the article went on, but it did indeed describe devolution as “constitutional vandalism”. I shall not forget that, and nor should the country of Wales, for which the right hon. Gentleman is now Secretary of State.
The Government have undertaken a U-turn on this. Let me refresh the House’s memory. Just a few months ago, the Secretary of State’s party wholly opposed the removal of the lockstep. In fact, his Department and the Treasury produced a substantive Command Paper, Cmd 14, which said:
“The Government is firm in its view that the income tax structure is a key mechanism to redistribute wealth across the whole of the UK, which is why the ‘progressivity’—
a word I think they made up—
“of this system is properly determined at the UK level.
The inclusion of the lock-step is also consistent with the principle that fiscal devolution should not benefit one part of the UK to the detriment of another—this could occur if the Welsh Government is able to set a substantially lower rate for higher/additional taxpayers without needing to change the basic rate”.
That is what the Secretary of State seems to be suggesting —that we set lower rates in Wales than in England.
We do not demur from the sentiment expressed in the Command Paper, but nor do we greatly object to the Government changing their mind on this issue. That is partly because they are reflecting the views of all parties in the National Assembly—it is appropriate and good that the Secretary of State has listened to them on this —and partly in the light of the Smith commission findings, which have shifted the debate significantly by proposing 100% devolution of income tax to Scotland. In fact, it could be argued that there is now a case for going further than is proposed in the Bill. It seems unlikely to me that the people of Wales would find it acceptable to be asked in a referendum about having lesser tax varying powers than those on offer in Scotland.
Many of us in the House now recognise that perhaps one of the mistakes of the previous Government was to allow asymmetry to develop between different parts of the UK in earlier rounds of devolution. That has driven pressure for greater change in Wales to reflect changes in other parts of the country. In fact, the case has now clearly been made for a constitutional convention to consider all the issues in the round and to try to derive a lasting settlement acceptable to all parts of the UK.
The Government have not yet agreed to a constitutional convention, and in its absence we must still consider the Welsh Government’s rationale for taking up powers to raise taxes, if those powers were accepted at a referendum.
It was deployed in an entirely different context. The implication of the Secretary of State’s pejorative use of the phrase was—I am paraphrasing, but this was broadly what he said in the rest of his speech —that the Welsh Government have not been responsible or accountable, but that they would become so for the first time if tax powers were afforded to them. I have never accepted that the Welsh Government are unaccountable —they are as accountable as any elected Government—and I certainly do not subscribe to the view that Wales has ever held out a begging bowl.
I think that the shadow Secretary of State is getting slightly bogged down and has now resorted to what he calls “paraphrasing” the speech I made to the IWA, although he is actually misrepresenting it entirely. My strong and clear point is that we have had 15 years of devolution in which the dominant theme of Welsh politics has been discussing how much money handed down through the block grant can be spent in Wales. The Bill and the new shift in devolution are about changing the nature of the debate so that it is not just about how much money we have handed down from London, but about raising money within Wales, growing the economy in Wales and seeing Wales stand on its own two feet.
The Secretary of State makes my point for me because I do not for a minute subscribe to the notion that Wales has money handed down to it from Westminster. That money reflects the taxes paid by Welsh people, and more importantly, in a Union that is meant to be about our ability to share resources, pool risk and redistribute from wealthier to less wealthy parts, it reflects the morality and values of our country. Unfortunately, that morality and that set of values are being undermined by the Secretary of State’s description of the Union as one in which one part is a supplicant and another is handing down money.
(10 years ago)
Commons ChamberI hate to say it, but the hon. Gentleman really ought to study his history a little harder, because Kier Hardie, even when elected in 1895—not as a Welsh MP, but in West Ham—spoke in this House about devolution, and when elected to Merthyr as a Labour MP in 1905 he was absolutely a campaigner for home rule and devolution for Wales. The hon. Gentleman’s history is wrong; mine is perfectly accurate.
Recent history—the past four and a half years—shows that the Labour party is still campaigning for rights for Welsh people and standing up for Welsh Labour valleys. Thus we have seen Jobs Growth Wales, the most effective youth employment programme anywhere in Britain, 1,000 jobs created only last week, and massive increases in inward investment, all positives that have come as a result of devolution and the protection of the Welsh people.
The shadow Secretary of State mentions Jobs Growth Wales. Of course we applaud any initiative that gets people into work and helps increase opportunities for young people, particularly in Wales, but he must be aware that the independent study of Jobs Growth Wales commissioned by the Welsh Government showed that around 75% of all the young people on the programme would have found work anyway. He needs to answer this question: is that a good use of taxpayers’ money?
I think that the evidence for Jobs Growth Wales is absolutely clear to us all. It has proven to be the most effective youth employment programme anywhere in Europe. It is succeeding in creating 16,000 opportunities for young people, and it is succeeding in keeping those young people in work beyond the six months. It is widely supported by the business community right across Wales. I cannot imagine for a minute that the Secretary of State should wish to undermine it, especially when it stands in such stark and promising contrast to his Government’s Work programme.
Around 750,000 young people in Britain are still unemployed. Although that is fewer than the 1 million who were unemployed just a couple of years into this Government’s time in office, and we welcome that fall, I suggest that 750,000 is an enormous number of people to be left languishing on the dole, but that is what we have come to expect from a Tory Government.
In response to the hon. Member for Alyn and Deeside (Mark Tami), those are not my words, but those of an independent inquiry into the matter. Of course the business community supports Jobs Growth Wales, which has made good inroads into giving opportunities to young people. However, when about 75% of young people are considered to be able to get work anyway without the need for a support programme, we should bear in mind the question of whether it is a good use of taxpayers’ money.
In comparing Jobs Growth Wales with the Work programme, the shadow Secretary of State is comparing apples and pears. The Work programme does not work with bright young graduates who are fresh out of university but with people who face the biggest hurdles in getting back into work—the 200,000 people in Wales who never worked a day in their life under Labour.
I do not want to belabour the point, but the Secretary of State needs to consider carefully whether he wants to denigrate Jobs Growth Wales, which does not, by and large, work with undergraduates but with youngsters aged 16 to 24, most of whom will not be undergraduates. It has been demonstrably successful in Wales, and he should be welcoming and supporting it, not seeking to undermine it.
I do share my hon. Friend’s anger, and I will express it here today. I also express my anger that Government Front Benchers laugh when we hear of the scale of the poverty that is still being visited on people right across the country.
On a point of order, Mr Deputy Speaker. The shadow Secretary of State has just claimed from the Dispatch Box that I was laughing at the news that the ward in Caerphilly is now the most deprived—[Interruption.] Not at all—it is a complete untruth, and I ask him to withdraw it.
Order. I am sure that the shadow Secretary of State has taken your comments on board.
Introducing a tax that is reliant on people being able to move to smaller properties was, in and of itself, barmy, because there are not the properties for people to move into. That is why 60% of social housing associations in Wales are struggling to rehouse people.
Of course, it is not just the people who are hit by the cuts to welfare payments that are affected, but the wider population. Sheffield Hallam university produced a report just a few weeks ago that said that the welfare cuts will result in a £1,000 reduction in the incomes of all people across the south Wales valleys eventually, as reductions in aggregate demand, reductions in spending and further job losses—it suggested that 3,000 jobs might be lost across south Wales—result in a less dynamic and resilient economy. It is not just the people who are directly impacted by the welfare cuts who are affected, but the wider economy.
On top of the welfare cuts, ordinary workers who are not in receipt of benefits are losing £1,600 a year. That is why Labour will do something about low wages in Wales. We have made it very clear that we will set the national minimum wage at 58% of median earnings by 2020. That will mean a minimum wage of £8 in Wales and will put an extra £2.50 per week in the pockets of working people. It will mean 60 quid a week or £3,000 a year for hard-working families. [Interruption.] The Secretary of State laughs and giggles once more, as I discuss low wages.
He is laughing even as he comes to the Dispatch Box. I am talking about low wages in Wales and the Secretary of State is giggling. I do not know what he wants to tell us, but he can have another go.
There is no laughing or giggling, but we can smile because the hon. Gentleman trumpets, in his usual proud, puffed-up way, the idea that the Opposition would increase the minimum wage to £8 an hour. Under the proposals that the Government have put in place, the minimum wage would be higher than that. Why is he proposing a cut in the minimum wage?
It is nonsense to suggest that we are proposing a cut in the minimum wage. We will increase the minimum wage to £8, which will bring massive benefits for hard-pressed workers in Wales.
I meet regularly the Farmers Union of Wales and NFU Cymru and I am aware of what they say. I also speak to a lot of individual farmers and, again, I point out that there is a split. There are some strongly held views on both sides, so the Prime Minister's strategy of trying to settle the debate for the long term and get it out of the way is absolutely right.
Time and again over the past four and a half years, the Labour party has got the big calls about the economy wrong. Their dire predictions about increasing unemployment have not materialised. Their prediction that the Welsh private sector was too thin or weak to support the rebalancing of the economy has been proved wrong.
There is, however, one thing about which the shadow Secretary of State has been right, not wrong, and on which we absolutely agree with him. He was recorded saying to activists—at his own party conference, I think—that his leader was not quite up to the job, and that his party had lost touch with its core voters. We entirely agree with his analysis in that instance.
If the Secretary of State is going to repeat what is frankly nonsense—if he is going to come out with unsourced gibberish like that—he really needs to come up with some corroboration. Otherwise, he can withdraw what he said right now.
Well, I do not know. I read the press, and I see what the press report.
On a point of order, Madam Deputy Speaker. The Secretary of State has just uttered an untruth in this Chamber. I do not know where he has come up with that untruth, but I ask him to rescind it immediately, and apologise.
(10 years, 1 month ago)
Commons ChamberMy hon. Friend makes a good point. I heard the comments by the First Minister and others, at the end of the Scottish referendum campaign, about wanting home rule for Wales. When I travel round Wales and talk to people and businesses, I find there is an appetite for more devolution, but I do not detect much appetite for home rule. Indeed, support for independence in Wales is at a historic low of just 3%.
May I add my welcome to the Secretary of State in his new role, and to the Minister? I also welcome the zeal that the Secretary of State has shown for devolution—unexpected zeal, because of course he used not to be so fond of it. For the benefit of the House, will he confirm today that he no longer thinks that devolution is what he once described as “constitutional vandalism”?
I pay tribute to the internet research skills of the shadow Secretary of State. He is referring to an article I wrote in 2007, at a time when the position of Secretary of State for Wales was reduced to a part-time job; when there was no fiscal devolution; and when there was an unbalanced, unstable devolution settlement for Wales. I am delighted to be part of a Government who are rectifying some of those wrongs.
I thank the Secretary of State for that clarification. We agree with him that devolution is not constitutional vandalism, but I will tell him what is: a Prime Minister of Britain describing Offa’s Dyke as
“the line between life and death”,
and a Tory Health Secretary hiring the Daily Mail to scuttle around traducing Welsh public services. That is constitutional vandalism and the Secretary of State’s record will be judged not by soft soap and warm words about devolution, but by what he does to condemn the war on Wales.
Not a single Member of Parliament with a Welsh constituency could stand up and honestly say, hand on heart, that, when they get out and speak to people on the doorsteps on a Saturday morning, those people do not tell them that the quality of their health services is the No. 1 issue facing the people of Wales. It is wrong of the Welsh Labour party to seek to shut down debate about and scrutiny of the performance of its Administration in Cardiff when it comes to the most important issue for the people of Wales.
(10 years, 7 months ago)
Commons ChamberI, too, would like to start by welcoming you to the Chair, Dr McCrea. It is a pleasure to serve under your chairmanship. I thank hon. Members on both sides of the Committee for their contributions to this early part of the first day of our deliberations.
Amendment 9 would give the Assembly the power to decide, by resolution, when Assembly elections are held, and would remove the Secretary of State’s powers in relation to varying the date of Assembly elections and proposing a date for extraordinary Assembly elections. Amendment 10 would prevent the Assembly from setting a date for an election on a day on which it knows, or reasonably expects, a parliamentary general election to be held. The amendments would permit the Assembly to determine the date of Assembly elections and consequently the length of its own terms. That reflects a recommendation made by the Welsh Affairs Committee arising from its pre-legislative scrutiny of the draft Wales Bill.
It is worth pointing out that the Silk commission considered the matter of legislative competence for Assembly elections to be outside its terms of reference and made no recommendations in this regard in its second report. Nevertheless, the Government believe that the devolution of further powers to the Assembly should not be undertaken in a piecemeal fashion, and that the issue would best be considered in the wider context of possible changes to the Welsh devolution settlement arising from the recommendations made by the commission in its second report. The Government made clear, on publication of the report, that recommendations requiring primary legislative change should be a matter for the next Parliament and the next Government, and consequently that they should be for political parties to consider in preparing their election manifestos. We believe the same principle should apply when considering whether legislative competence for Assembly elections should be devolved to the Assembly. It is important that electors are clear on how long they are electing Assembly Members for when they vote in the 2016 Assembly election, and that five-year Assembly terms are in place by then to ensure that Westminster and Assembly elections do not coincide in 2020.
The Fixed-term Parliaments Act 2011 moved this House to a fixed five-year cycle and consequentially provided that the next ordinary general election to the National Assembly for Wales would be moved on a one-off basis by one year from 7 May 2015 to 5 May 2016. This responded to concerns raised by the Assembly that holding general elections to this House and to the Assembly on the same day could lead to the Assembly elections being overshadowed. I am encouraged that Members of all parties seem to be in agreement on the position that we do not want the two elections coinciding. I particularly welcome the Labour party’s support in seeking to minimise the risk of that, which is evident in amendment 10.
Similarly, amendments 30 and 31, tabled by right hon. and hon. Members from Plaid Cymru, are intended to ensure that an ordinary Assembly general election does not take place within six months of a UK general election. I am encouraged that the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) has been reassured by the debate so far and by our previous discussions, and that he is not going to press his amendments on that basis.
There is cross-party support for the principle that, as far as possible, we should seek to ensure that ordinary general elections to the Assembly and to this House should not coincide. With the next Assembly election scheduled for 2016, if the Assembly remains on a four-year cycle, the two sets of elections would coincide every 20 years, starting in 2020—something that all parties are clearly keen to avoid. Clause 1 makes it far less likely that Assembly elections and parliamentary elections will coincide in future. I therefore ask Opposition Members to support the clause, to consider the further devolution of powers to the Assembly in the context of preparing their own parties’ manifestos and consequently to withdraw or not press the amendments.
I am grateful to the Minister for acknowledging that our amendments reflect the views of the Welsh Affairs Committee and, indeed, as I said earlier, those of the Welsh Government, and that they were tabled in good faith. I am equally pleased to hear that when it comes to looking at the Silk commission part I report or any legislation that might arise from it or be reflected in the manifestos before the next election, the Government will be open to considering whether the Assembly should be responsible for—or at least have the ability to consent to—when the elections should take place. In the light of the Minister’s remarks, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 1 ordered to stand part of the Bill.
Clause 2
Removal of restriction on standing for election for both constituency and electoral region
I, too, welcome you to the Chair, Mr Chope. It is a pleasure to serve under your chairmanship.
We support clause 4, which renames the Welsh Assembly Government. That is what the Welsh Assembly has long said that it would like to happen and it reflects normal custom and practice across Wales, so we are pleased that the Government have decided to change things and use the term Welsh Government in future.
On new clause 5, we accept that there is a debate to be had about the name. Silk part II refers to the prospect of a Welsh Parliament and it is ironic that the leader of the Conservative party in Wales holds that view. I admire the chutzpah with which the Under-Secretary glossed over that, as it is an irony that the Opposition see clearly. However, this is an area of debate that ought properly to be dealt with in any legislation that reflects Silk part II rather than under this Bill, which properly reflects the preponderance of Silk part I. For that reason, even if the new clause were pressed to a vote, we probably would not support it.
I agree very much with the comments made by my hon. Friend the Member for Forest of Dean (Mr Harper). There are two elements to the debate. The first is about what we call the legislature and the second is about where the decision is taken. As for the first, there is an emerging debate in Wales about what we should call the National Assembly and whether it should have its name changed. The leader of my party’s group in the Assembly has a view that I fully respect. He is an excellent colleague and I am sorry if I gave the impression that I was glossing over his views, but I still maintain the position that the debate is emerging and has not yet engaged with the public consciousness. Until we get to that point, it is probably a debate that will not be resolved.
As for the second part of the debate, the Silk commission referred to the decision on where the decision should be made in part II of its recommendations. We have been clear and consistent all along that decisions about the Silk part II recommendations are not for this Bill but for a future Parliament and a future Government and for the parties to consider in their manifestos. I stand by my earlier remarks and ask the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) not to press his new clause to a vote.
Question put and agreed to.
Clause 4 accordingly ordered to stand part of the Bill.
Clause 5 ordered to stand part of the Bill.
New Clause 4
National Assembly to set number of AMs
‘Her Majesty may by Order in Council provide for the transfer of responsibility for setting the number of Assembly Members to the National Assembly for Wales.’.—(Jonathan Edwards.)
Brought up, and read the First time.
Question put, That the clause be read a Second time.
(10 years, 9 months ago)
Commons ChamberMy hon. Friend and his relatives in Wales are right. That is exactly what is happening. There is a long way to go, however. The recovery is patchy, but a positive picture is emerging for Wales. Nobody should be in denial about the growth that we are seeing across Wales.
Recent improvements in employment rates in Wales are obviously profoundly welcome, but chronic unemployment continues to dog us. Last week, I met a miner in my constituency who had not worked for 30 years, since the pit closure programme. He, like many others in Wales, wants to know the full truth about the political motivations that lay behind that programme, which poured thousands of Welsh people on to the dole. Does the Minister agree that the papers should now be published in full so that we can know the truth?
I am not going to be drawn on that specific issue, but there is a serious problem with long-term unemployment in Wales, with 200,000 people there who have never worked a day in their lives and 92,000 children living in homes where nobody works. That is exactly why the hon. Gentleman should be supporting what we are doing through the Work programme and our welfare reforms, which are going to benefit exactly those people.
So a Minister for Wales refuses to engage on the issue of the miners’ strike that poured thousands of people on to the dole in Wales. Is he seriously telling those Welsh miners that they do not have the right to know the truth? Will he take the opportunity, when he comes back to the Dispatch Box, to apologise for the actions of his predecessors and for the political motivations that lay behind that strike?
We understand why the shadow Secretary of State is bringing this politically motivated issue to the Dispatch Box today: it is because he has run out of things to say about the economy in Wales, about unemployment and about growth. Over the past three years, he has been proved wrong on all those issues.
(10 years, 10 months ago)
Commons ChamberThe hon. Gentleman raises an important issue for his constituents and people throughout Wales. At the Wales Office, I regularly meet companies such as Western Power Distribution and National Grid to discuss why many consumers in Wales are paying those higher costs, and for all kinds of reasons. If he has specific questions that he would like me to follow up, I would be happy to meet him to do that.
May I, too, associate myself with the Secretary of State’s remarks about Lord Roberts and in particular express my sadness at the passing of our friend and comrade Paul Goggins? I worked with Paul at the Northern Ireland Office, and I can say from personal experience that he was a wonderful Minister, a lovely man, and a hugely dedicated Member of the House. All our thoughts are with his family; everybody who knew Paul will miss him greatly.
A moment ago, the Minister said that measures in the autumn statement would cut energy bills for families in Wales by £50. That was one boast made by the Chancellor in that statement, and it came to fruition in Wales this morning with the announcement by SSE—Wales’s biggest energy supplier—that it was helping families with a price cut. Will the Minister confirm what that announcement actually means for families in Wales?
The action that we are taking across a broad range of measures—energy, fuel prices, income tax thresholds—means that we are helping people on the lowest incomes in Wales with the challenges of the cost of living at the moment. The hon. Gentleman does not refer to the fact that we are seeing improvements in wages in Wales and in personal disposable income, and he should welcome the overall positive picture that is emerging in Wales.
I had hoped that the Minister would have made a new year’s resolution to be a little more straightforward with the Welsh people. The truth is that the announcement by SSE this morning, following the announcement by the Chancellor that bills will be cut by £50, is actually that bills will rise in Wales this year by £70. It is a con trick, plain and simple, and the Minister should admit that and urge his colleagues to adopt Labour’s price freeze as the only way to curb these profiteering energy companies.
I am sorry to say this to the hon. Gentleman, but if he talks to people in industry out there who understand the economics of energy, they will all tell him that what the Labour party has proposed for energy does not make sense at all and has no credibility. The Government are taking real practical action that helps families at difficult times, and the picture that we are seeing in Wales overall is positive.
(11 years, 1 month ago)
Commons ChamberWe have seen the comments by Redrow Homes and Persimmon Homes. These are important Welsh builders who need to be building new homes in Wales, but who are not building as many as they should be. The Welsh Government are responsible for the supply of new housing in Wales, and I think that serious questions need to be put to Welsh Ministers in Cardiff about that.
It is truly extraordinary that the Minister continues to defend the bedroom tax. Will he confirm for the record whether, according to the Government’s own figures, Wales is hit harder than anywhere else in the UK? As he mentioned the disabled, will he tell us how many disabled households in Wales are hit by the bedroom tax?
We have had this question before. Wales is not hit harder—to use the hon. Gentleman’s terminology—than other parts of the United Kingdom. What is remarkable is that he still clings to the mythical economics of plan B. More than anybody else in the Opposition, he argues for more spending, more borrowing and more debt, all of which is a road to poverty for people in Wales.
The Government’s own impact assessment states that 46% of households in social housing in Wales have been hit by the bedroom tax, which is a higher proportion than anywhere else in Britain. Those are the Government’s own numbers. The bedroom tax will also hit 25,000 disabled families. The Minister should confer with his colleague the Chairman of the Welsh Affairs Committee, the hon. Member for Monmouth (David T. C. Davies), who said only yesterday that the bedroom tax was not working in Wales. It is not working for those 25,000 people—25,000 reasons why we need a Labour Government to scrap the bedroom tax and deliver justice for those people in Wales.
I did not see the specific remarks of my hon. Friend the Member for Monmouth (David T. C. Davies), but we are making available to Wales more than £7 million in extra money for discretionary housing payments. On top of that, we are making money available for rural borough councils in Wales to assist with the transition. We recognise that it is a challenge and a difficult period for people going through our changes to housing benefit, but we are supporting local authorities in Wales to help Welsh people through that transition.
(11 years, 9 months ago)
Commons ChamberThere are different types of housing stock throughout Wales, but one problem facing the whole of Wales is that of overcrowding and long housing waiting lists. It cannot be justifiable that, at the same time as people are receiving housing benefit for spare rooms, in the same streets and on the same housing estates there are houses with three or four children in the same bedroom.
How on earth can the Minister defend a policy that is unfair and unworkable and will penalise the disabled, forces’ families and foster parents in Wales? Does he deny that his Government’s own impact assessment shows that Wales will be harder hit than anywhere else in the UK? Is there not a single issue on which he and the Secretary of State will stand up for Wales?
There is nothing caring, compassionate or progressive about walking away from our responsibility to fix the deficit and the debt. If we do not do that, the very people we will hurt in the future will be the poor and the vulnerable—the very people whom we all came into politics to defend.