Welsh Affairs

Roger Williams Excerpts

Thursday 6th March 2014 Commons Chamber

[Glyn Davies]

I am hoping to make a speech without any sour notes, if possible.

My main political interest over recent decades has been the interests of Wales. I am unashamedly a Welsh politician. For many years I was involved in developing the Welsh economy—a new economy for Wales after the devastation of the beginning of the last century—by working with the Welsh Development Agency, the Welsh Tourist Board and the Development Board for Rural Wales. Through the late ’80s and early ’90s, those organisations did a magnificent job in developing the Welsh economy. I think that they were wound up too soon. Clearly, all quangos are wound up in the end, but I think they were wound up before the job was done, a decision that was taken, I believe, on the basis of prejudice, rather than evidence.

I am intensely proud of being a Welshman. It influences my politics in virtually everything I do in this Chamber. I simply do not accept that to be independently minded, to be culturally and linguistically proud, to be emotionally linked to our Welsh history and to be aware of our distinctive nationhood should ever be the preserve of Welsh nationalists, of Plaid Cymru. It is, and must always be, a part of Conservative philosophy.

There are a million issues I could speak about, but I will touch on just a few. The first is an economic view from rural mid-Wales, where I live. We know that Wales is not a coherent geographical unit. Economically, north Wales is always linked to the north-west of England, mid-Wales is linked to the midlands and south Wales is linked to the M4 corridor. I think that we should challenge the judgment of investing in links between north and south Wales, and not just on the basis of economic benefit, but on the cost-benefit analysis. During my years in the National Assembly, I always thought that there was an element of wanting to develop Wales as a geographical region, rather than just looking at the cost, as with the A470 and the A483. I think that is a real objective, because developing Wales as a coherent unit is important in itself.

Mid-Wales warrants much better treatment that it receives from the Welsh Government, and this is a long-term issue. Wales has an area in the middle between north Wales and south Wales, and it has always been a battle to develop the same awareness of mid-Wales as of the other two areas. We must focus on mid-Wales so that it brings the other two areas closer together. I have always thought there was a case for more investment in mid-Wales to create a unified Wales rather than just for the benefit of individual projects.

Mid-Wales is not just an area to put wind farms—they do not bring much economic benefit to the local economy—and which can then be forgotten in terms of industrial development. Given some political views—certainly not mine—in Wales, that is a danger, and we should challenge it.

[Roger Williams (Brecon and Radnorshire) (LD)]

My hon. Friend and I worked together on the Development Board for Rural Wales. In Newtown and Welshpool, where investment was focused, there is a residue of manufacturing, as there is in Brecon. Would such investment not bring great benefit to rural mid-Wales again?

[Glyn Davies]

I thank my hon. Friend for his contribution. We worked together on the sort of development that not just transformed mid-Wales, but brought north and south Wales closer together. That is a point I wanted to make in this debate.

Wales should be developed not just as an economic unit, because it is important to develop it as a political entity. That has probably always happened throughout history, but it has certainly gathered pace in recent decades. The Secretary of State has taken delivery of the Silk commission’s report, which came in two parts. There will be other opportunities to talk about it, but it makes two particularly important recommendations.

The first part of the report recommends that significant income tax powers should be devolved to the National Assembly for Wales. When the commission was set up, its main purpose in my opinion, and I think in the Government’s opinion, was to give the Assembly financial accountability so that decisions were made on raising money and spending it. The debate would then be the same as in every other democratic body imaginable and include raising money. Unless they accept that responsibility for raising the money they spend, the Welsh Government and the Welsh Assembly will not become a real governing body or a proper Parliament. That is hugely important.

--- Later in debate ---

[Alun Cairns (Vale of Glamorgan) (Con)]

I am grateful for the opportunity to contribute to the debate. I rise to speak as a passionate Welshman who enjoys Welsh history, our proud culture and the contribution that many Welshmen have made to the history of Wales, the UK and beyond. I will try to be positive, and I will ask my questions in a positive spirit.

Whatever people’s opinions of devolution in 1997 after the referendum, there was a genuine hope across all political parties that devolution would work and make a difference. It provided a great chance to make a difference and develop a Government who could respond to changing needs, react to problems as they emerged, and take decisions much closer to the electorate.

My main subject today will be the reputation of Wales, my worry that its governance is damaging that reputation and the consequences of such damage. It is easy to say, after one four-year term of governance, that reforms were established but there has not been enough opportunity to see the outcomes and benefits. After a second term, that argument gets somewhat weaker and we would expect to see some benefits. But after nearly 15 years, we should really be seeing some positive outcome from devolution, such as the “devolution dividend” as it was called at one time.

Sadly, in so many areas, if not almost all areas—I am trying to think of one where I am wrong—the relative position of Wales has fallen back, compared with the rest of the United Kingdom. I do not want to be party political in making that point, but I seek an acceptance that Wales is now the poorest part of the UK. That was not the case before 1997. As a result, the challenge of attracting investment and creating entrepreneurship is so much greater. It is so much more difficult to attract investment to the poorest part of the UK, because the gross domestic product and the value of the spend is not as high. The reputation of Wales is therefore key.

[Roger Williams]

I am following my hon. Friend’s argument closely. Does he agree that part of the problem is that Wales has a legacy of ill health from heavy industry and a legacy of economic inactivity because of the loss of those industries? That has never been reflected in the Barnett formula so those needs are still unmet in Wales.

[Alun Cairns]

I accept part of that, but I would also look to areas that have a similar legacy but are not the poorest parts of the United Kingdom. Those are the very same points that, it was argued, would be corrected by Adminstrations that would take decisions much closer to the people. I speak as a pro-devolutionist—I am not against the institution, I am against the governance, the way in which the institution has worked and how policy has been set.

--- Later in debate ---

[Roger Williams (Brecon and Radnorshire) (LD)]

St David famously instructed his followers on his deathbed to do the little things, and he probably understood that I would have only four minutes to speak, so I shall focus my comments on two steps that I would like to see in the forthcoming Budget. I have confidence that one of them will be in it because it was announced in the autumn statement: two reductions in employer national insurance contributions. In my constituency between January 2013 and January 2014 unemployment fell from just over 900 to just over 600, but more importantly the number of 18 to 24-year-olds who were unemployed and claiming benefit fell from just over 300 to just over 200. However, that does not hide the anxiety of those who are desperate to get into employment and are still finding it difficult to do so.

One of the reductions in employer NICs is to reduce every business’s contribution by £2,000. That will be especially advantageous to small businesses, which are so typical of rural Wales. In particular it will encourage those who are perhaps sole traders—just one-man or one-woman bands—to take on their first employee. I am hoping that will encourage them to do so.

The other reduction in employer NICs is that no employer contributions will be paid for employees who are under 21. That will be a great incentive for businesses to take on young people, and in particular apprentices—and this week is apprenticeship week.

I am confident that that measure will be in the Budget, and I am given to understand that the other measure might also be in it. I therefore ask the Secretary of State and the Minister to insist it is kept in the Budget if they see it any draft documents. I have raised on a number of occasions the plight of people who are off-grid—who do not get mains gas. Their energy costs are very high because mains gas is the cheapest form of fuel. Instead, they have to depend on heating oil, liquefied petroleum gas, solid fuel and sometimes electricity to heat their homes. Also, they do not get the dual fuel tariffs that people who receive both gas and electricity on the grid can benefit from. I understand that giving some respite to people who are off-grid may be considered, and I can make some suggestions in that regard. One of them is to give a subsidy so that the national grid can connect those communities that do not have the benefit of mains gas. All the communities of Howey, Llangynidr, Abercraf and Talgarth in my constituency would greatly benefit from mains gas, and that would have a great input into reducing fuel poverty.