Philip Hollobone
Main Page: Philip Hollobone (Conservative - Kettering)Department Debates - View all Philip Hollobone's debates with the HM Treasury
(10 years, 2 months ago)
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Mr Philip Hollobone (in the Chair)
I suspect that for many Members it is a bit like “Groundhog Day”, as everyone here was in the Chamber yesterday discussing the Wales Bill.
Mr David Hanson (Delyn) (Lab)
Good morning, Mr Hollobone, and welcome to the Chair. It is a great honour for you to be here to share our Welsh discussions. I am pleased both to have had the luck to secure this debate, and that we have a strong showing from Members representing north Wales constituencies. We also have my hon. Friend the Member for Caerphilly (Wayne David) and my hon. Friend the Member for Llanelli (Nia Griffith), who is on the Front Bench.
This debate offers us an important opportunity to discuss the north Wales economy, for my colleagues and me to promote what is good and strong about north Wales to the rest of the United Kingdom, and for us to look at some of the key issues that can help our economy grow even faster and stronger and improve the living standards of our north Wales constituents. It is also an opportunity for us to press the UK Government to be an active Government who are engaged in promoting the economy and are not standing back. They should work closely with our colleagues in the Welsh Assembly to achieve economic growth and be active as a part of a wider Europe. In the run-up to the European elections, we need to emphasise strongly how important Europe is to the north Wales economy. I will emphasise our economy’s cross-border nature. The Deeside hub is a key economic driver for north Wales and for north-west England, the Wirral, Liverpool and Cheshire. Many of my constituents work in England and many people in England work in north Wales, and that cross-border working is extremely important to our economy.
The economy of north Wales was worth a staggering £10.6 billion last year, which represents £15,500 per person. That is 72% of the UK average, but that is because constituencies such as that of the hon. Member for Aberconwy (Guto Bebb) have a high retirement population that drags down the figure. Our economy is still growing, leading the charge for the UK economy as a whole. In north Wales, we have a number of economic success stories in renewable energy, such as West Coast Energy in my constituency, Mostyn docks and the wind farms off the north Wales coast, such as Gwynt y Môr.
Several hon. Members
Mr Philip Hollobone (in the Chair)
Order. I do not want to call the Front-Bench spokesmen later than 10.40 am. Six hon. Members want to catch my eye and I do not want to impose a time limit, because I know you are a well-behaved lot with huge respect for one another. If you each speak for no more than seven minutes there will be time for the odd intervention and everyone will get in.
Mr Philip Hollobone (in the Chair)
There are 15 minutes left, and three hon. Members want to speak.
Ian Lucas (Wrexham) (Lab)
It is a pleasure to follow the poetic rhetoric of my hon. Friend the Member for Ynys Môn (Albert Owen) and it is a pleasure, Mr Hollobone, to serve under your chairmanship. I congratulate my right hon. Friend the Member for Delyn (Mr Hanson) on his speech. I will not repeat many of the things he said because he gave an excellent exposition on north Wales and I accept his speech in its entirety.
Mr Hollobone, you should visit the Pontcysyllte and Chirk aqueducts in the constituency of my good friend—
Mr Philip Hollobone (in the Chair)
Order. Several references have been made to the question of whether I have been to north Wales. I have been there many times, and on a Territorial Army exercise I swam across the reservoir at Pontcysyllte and camped on the beach at Penmaenmawr. I know the area extremely well and I recommend that tourists visit it.
Ian Lucas
We have an endorsement at the highest level. I will say no more about tourism, except that north Wales is a beautiful part of the world and tourism is an important part of its economy.
Although I promote north Wales as much as any hon. Member, I want to speak about job losses in Wrexham. We have had a difficult six months. We lost more than 500 jobs at Sharp Manufacturing UK in February, only two months ago. We lost 140 jobs at Kellogg’s in Wrexham, and just outside, in south Clwyd, more than 200 jobs were lost at First Milk. This is a positive part of the world and I will talk about the positives, but we must bear in mind the fact that substantial, well-paid and valued jobs that have been there for many years are going in our local economy. We must realise that the type of grant aid that was available in Wrexham, for example, in the 1980s and 1990s and which sometimes led to investment from outside the UK and to inward investment is no longer available.
A strong theme in all parties is that we must grow the economy in north Wales from within and develop local investment—I was interested in what the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) said about banking—and mechanisms to support local businesses. We have excellent local businesses.
Only last week, I visited Magellan Aerospace in Wrexham, which is an important part of the supply chain for Airbus: a positive picture was presented and apprentices are being taken on. I was delighted to meet Mr Darryl Wright, a governor at a local school that encourages apprenticeships in the aerospace industry. We will meet some of those apprentices later this week. I am delighted that in Wales we are doing better with apprentices than anywhere in Europe, including England, with the help of the excellent Minister, Ken Skates—he formerly worked for my good and hon. Friend the Member for Alyn and Deeside (Mark Tami)—whose commitment is showing through and creating an enormous number of apprenticeships.
In our local economy, we must focus on the development not just of physical infrastructure but of colleges such as Coleg Cambria, to support apprenticeships, and Glyndwr university, to develop education within our region. In that way, we can support our local economy and make not just the physical infrastructure but the intellectual infrastructure world beating. The companies that I am talking about—for example, Magellan, which is a Canadian company—do not need to be based in our region and will go there only if it is a world-competitive economy and we provide the infrastructure that enables us to compete.
My right hon. Friend the Member for Delyn made points about the development of the road and rail networks. We absolutely must argue the case for our region at Welsh Government, UK Government and European levels. Unless we do so, we will lose the benefits of those majestic companies that we have in our area. The work being done by the Welsh Government is very positive. One scheme we have not mentioned is Jobs Growth Wales, which is very important. It has been mentioned on many occasions in my constituency by employers. I visited a business the week before last called Fotofire Ltd—I visit businesses a lot in Wrexham and liaise with them closely—and I was told that the scheme had led to the employment of a number of individuals in the business. They had been assessed by the employer, which had then made judgments that they were the right people for the business. That company works in media, in the web industry, and is a home-grown business in Wrexham. It is tremendous to see that sort of business developing. I am pleased that Jobs Growth Wales is making such a positive contribution. If the Minister was to take something on board, he would look at that scheme and consider whether it could be applied across the rest of the UK.
I also want to say a word on finance. A key issue for us is financing the local economy. It is not only about the past five years; it is now seven years since the great economic crash. I attended a meeting last Friday morning of Wrexham business professionals where, again, the issue of access to finance was raised by businesses that are still having problems with our uncompetitive banking system. I have argued over a long period for the development of a model based on the German Sparkassen method, with a banking economy linked to our local industrial economy. Our economy provides 30% of the manufacturing output of Wales. A lot of money and wages is being earned in our local economy, and I believe that the people of north Wales would like to invest in their local economy through models and through a local bank. The Sparkassen method is resilient; it has worked in Germany over many years.
I am delighted that the Labour party has committed itself to regional banking. If we are to have a competitive market that provides finance for local business, I believe that that type of investment needs to come through local banking, with individuals who know the local economy. I wish that the Government would see that current banking methods are not working, that we need to create a more competitive banking system, and that they would look at alternatives that have worked in other places. That would be very welcome for businesses in my constituency and is something I would be keen to promote.
We have a positive picture in north Wales, with some of the caveats that I have indicated. There is an issue relating to wages. I would say that this Government increased VAT—they did not decrease it—taking money out of the pockets of my constituents and putting it straight into the pockets of the Chancellor of the Exchequer, at a centralised level. That had a damaging effect on Wrexham and, I am certain, on other communities in Wales. Increasing VAT is a really bad policy, because it takes money out of local economies, and I hope that such a mistake will not be made again.
Mr Philip Hollobone (in the Chair)
We have six and a half minutes for two speakers. First, I call Susan Elan Jones.
Stephen Crabb
No, I will not join in criticising Stena. I met with the company recently, and it faces a really tough battle to stay competitive and keep those services. It is a good company that has invested in the hon. Gentleman’s constituency and in mine. We have to work with it to see that it continues to make that investment.
The question of Europe was raised by several Opposition Members, and I repeat what I said at Wales Office questions last week: the vast majority of businesses across the UK and in Wales strongly support our desire for a change in our relationship with Europe regarding the level of regulation and the burden of cost that our membership places on the private sector. Businesses do not want to rush headlong to the exit and leave the European Union, but they want change. That is backed up by comments made by those who run the Institute of Directors, the British Chambers of Commerce and the CBI.
The point about multinationals being based in Wales and using it as a springboard into the European Union is important. I received a letter this morning from one of those multinationals, in which it welcomes the action that we have taken on energy costs but raises concerns about a regulation at the European level. Small and large businesses in Wales understand our issue with the European Union, and they support the action that the Prime Minister is taking to reduce costs and the burden of regulation for Wales.
In the few seconds that I have remaining, I again thank the right hon. Member for Delyn for securing the debate. I look forward to discussing the issues again in future.
Mr Philip Hollobone (in the Chair)
Order. I thank all Members who took part in that very interesting debate. Will those who are not staying for the next debate please leave quickly and quietly? We now move on to the important subject of Government support for grassroots football. I call Mr David Crausby.