Shared Prosperity Fund: Wales

Philip Hollobone Excerpts

Wednesday 14th November 2018 Westminster Hall

[Several hon. Members rose—]

[Mr Philip Hollobone (in the Chair)]

The debate may last until 5.30 pm. I am obliged to call Her Majesty’s Opposition spokesman at no later than 5.12 pm, which gives us about 20 minutes of Back-Bench time. Five members are standing, so that means you each have four minutes. I first call David T.C. Davies.

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[Wayne David]

On a point of order, Mr Hollobone. We have a whole list of incredible accusations here, which have no relevance whatever to the debate. That cannot be in order.

[Mr Philip Hollobone (in the Chair)]

I would regard nothing that Mr Davies has said thus far as out of order, but I note Mr David’s objections and I am listening closely to all contributions made by all Members. I draw Mr Davies’s attention to the clock. He has just over a minute left.

[David T. C. Davies]

None of these is an accusation. They are all in the Auditor General’s report, which only came about as a result of the information that I gave them, because nobody in the Welsh Assembly—neither Members nor Government—was particularly interested in the fact that millions of pounds of their money was being spent. The reason I sent the information off was that the directors of that company came into my office and told me that their project was being backed by BMW and General Electric. It was not, because I checked with them afterwards. Then the directors sent their lawyer, Jonathan Coad, to try to take legal action against me, Martin Shipton and Trinity Newspapers, for falsely alleging General Electric and BMW’s involvement, but they did not realise that my tape recorder had accidentally been left on at the time and I had the whole thing on tape.

I say to hon. Members that the Welsh Assembly Government have failed over and over again. At least one civil servant’s name comes up every single time, many of the people involved in the decisions are all known to each other, and a lot of them have links back to the Labour party. I have touched on only three or four projects, but we all know that there are various others—Kukd was another one, as well as Kancoat and Blurrt. One after another, projects have received large amounts of funding, often running into millions, from the Welsh Government, and no proper checks and balances have been pursued.

[Mr Philip Hollobone (in the Chair)]

Order. I call Mr Ben Lake.

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[Ben Lake]

I agree wholeheartedly with the hon. Gentleman. If the Barnett formula were applied to the shared prosperity fund, that would be nothing short of a disaster for our communities. We need to make sure that whatever the methodology, it is focused on the need of communities, rather than on simple population share.

I must labour the point: if the fund is to be used for other responsibilities, it cannot be reduced to a convenient tool for hard-pressed Departments to realise budget efficiencies via consolidation. The funding will be a lifeline for our communities, so it must provide Wales with no less, in real terms, than the total allocated by the EU and UK funding streams it replaces.

Furthermore, I believe the UK shared prosperity fund must operate on multi-annual financial allocations of at least seven years. Inconvenient though that may be for the Treasury’s spending review cycles, it would allow recipient organisations and groups the time for proper planning and implementation of larger scale and transformative projects—the types of project needed seriously to ratchet up jobs, wages and living standards in constituencies such as Ceredigion. We cannot settle for mere tinkering around the edges. What is required is a programme that allows for substantial and prolonged investment, so that our areas are no longer less developed and eligible for such assistance.

As the hon. Member for Caerphilly (Wayne David) mentioned, in terms of the shared prosperity fund’s administration, important aspects of economic development are devolved, so the Welsh portion of the new fund should be devolved to the Welsh Government, potentially, as the hon. Member for Ynys Môn (Albert Owen) just mentioned, as an additional, separate block grant from the Treasury, so that we may bypass the Barnett formula.

Time is against me, so I will conclude with a question to the Minister, who I welcome to his place in the Welsh Office. Will he guarantee that the UK shared prosperity fund will be, in real terms, at least equivalent to the funds that it is replacing, and that its budget will be proportionally increased if other EU—or, for that matter, UK—competencies are to be blended into the fund?

[Mr Philip Hollobone (in the Chair)]

Order. I call Jo Stevens.

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[Albert Owen]

Absolutely. That is the next point that I want to move on to. I am a strong supporter of devolution—I have fought for it in referendums, and I have seen its enhancement—but devolution is no good just going from Whitehall down the M4 to Cardiff Bay. It needs to go throughout the areas of Wales, including to north-west Wales and north Wales generally. Real devolution is about empowering people in their local communities. My hon. Friend is right: we have a structure in the north Wales growth bid. We have a board set up, with business and local authority representatives, and they have the ability to be a mechanism for distribution of the new growth fund in the future. I hope that the Minister will take that on board. I know that he is visiting my constituency in north Wales shortly, and he will hear about that.

I want to quote the remarks referred to by the hon. Member for Ceredigion (Ben Lake), in which the Secretary of State for Housing, Communities and Local Government stated:

“The UK Shared Prosperity Fund will tackle inequalities within communities by raising productivity, especially in parts of the UK whose economies are furthest behind…It will have simplified administrative arrangements aimed at targeting funding effectively; and…It will operate across the UK. The UK Government says it will respect the devolution settlements in Scotland, Wales and Northern Ireland, and will engage the devolved administrations”.

I want those words to be put into action. I want the new Minister to take that on board and to work with us, as Welsh Members, to ensure that areas such as mine continue to grow and will benefit from the shared prosperity fund. I do not want to see this Government pull the rug from under the feet of the poor communities, education communities and farming communities that have benefited since 2000. Europe based its European structural funds on need, and that is what we need: to establish the needs of areas throughout the UK, including periphery areas such as the one that I represent, to show that we will go forward, that we do share prosperity and that we share it at a pace equal to that in the south-east of England. At the end of the day, we want a more equal society, economically and socially.

[Mr Philip Hollobone (in the Chair)]

We now come to the Front-Bench speeches, and the guidelines are five minutes for Her Majesty’s Opposition, 10 minutes for the Minister and the remaining time Mr Lucas may use to sum up the debate.