Support for the Welsh Economy and Funding for the Devolved Institutions

Debate between Richard Thomson and Jamie Stone

Tuesday 5th July 2022 Commons Chamber

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The hon. Member’s contribution is very good, and it actually rings a bell with me. In years gone by, were not the sheer rurality and distance factors in both Scotland and Wales tackled by the European Community’s objective 1 structural funding, which was carefully calculated to assist those areas that had the biggest disadvantage? The challenge for the UK Government is to try to do something similar—if they ever will—to what the EC used to do for us.

[Richard Thomson]

The hon. Member makes an excellent point. I remember well the benefits that were brought to the highlands and islands, part of which he represents, through objective 1 funding. The fact that the money came direct, bypassing London, gave us an assurance that the money would actually be spent in those areas. I am not certain that we could have had the same confidence in the UK Government in office at the time. The hon. Member and I differ on certain things in politics, but I think we might be able to make common cause on that.

The hon. Member leads me neatly on to levelling up. The Welsh Economy Minister, Vaughan Gething, has stated that Wales is set to lose some £750 million over three years, compared with the situation that would have pertained had the UK remained in the EU. I heard the plea and the earnest hopes from the hon. Member for Aberconwy (Robin Millar) that, somehow, Wales might be able to do better with less when it comes to that funding shortfall. I certainly applaud the ambition, but surely there can now be no doubt that there is a deficit of funding, relative to what it would have been, and that will be problematic when it comes to delivering projects. I see that even in my area of Aberdeenshire in north-east Scotland.

We could look at freeports. There are opportunities there for sure, but Stena notes that in the ports of Holyhead, Fishguard and Pembroke, traffic is down 30% on the pre-pandemic period. It will take significant activity around our freeports to compensate for that loss of economic activity in the ports, and resulting from that reduced traffic.

I could go on to talk about fair funding and how HS2 has conveniently been placed outside the brackets for Barnettisation, but I come back to the points that the right hon. Member for Preseli Pembrokeshire was making about offshore wind. I welcome his comments about the benefit that ScotWind promises to bring to Scotland.

As the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) said, Crown Estate devolution can play a major role in making sure that all the pieces that the right hon. Member for Preseli Pembrokeshire talked about are brought together strategically, so that we get all the supply chain spin-offs. It is, I would say, a fairly conservative argument that the Government should bring policy and resources into alignment, so that we get the best possible outcome and transparency—not just transparency of Government, but transparency in how we spend public cash. I cleanse the palate by saying that, to me, true devolution is empowering Government to act in that way in Wales and Scotland. That is preferable to bypassing devolution, as the United Kingdom Internal Market Act 2020 did to get around the fact that the Conservative party does not seem able to win elections in Scotland or Wales. It instead seeks to allocate resources without going to the trouble of winning elections in those areas.