(9 years, 11 months ago)
Commons ChamberTidal Lagoon Power in my constituency is mentioned in the national infrastructure plan. Will the Secretary of State join me in congratulating that important company on how it has worked with determination and grit to get the project through?
I echo the sentiments of the hon. Lady, who is a strong supporter of this important project. The quality of that company’s management, vision and business plan was precisely why I wanted the project to be included in the national infrastructure plan. It is also why I have been working hard with colleagues in the Treasury and the Department of Energy and Climate Change to get this potentially strategic project included in our long-term infrastructure plans.
(9 years, 12 months ago)
Commons ChamberLet us look at some of the symptoms in Wales of the disease of Tory economics, starting with food banks, because they are a useful barometer of this Tory Government’s impact. The volume of food banks in Wales has grown at a faster rate than anywhere else in Britain. In the first six months of this year, 40,000 people in Wales were forced to use them. That is a tenfold increase since 2010, when just 4,000 people used them. By the end of this year, it will have been a twentyfold increase, which is an extraordinary statistic.
I am sure that, while congratulating the city and county of Swansea, my hon. Friend will greet with some concern its decision to introduce food collection points across my constituency. It is a sad state of affairs when people have to be encouraged to go along to a council property to drop off food for less fortunate citizens, but they are to be applauded, and I urge everybody to support the food banks.
The food banks are to be applauded, but the fact that they are required should shame us all, particularly the Government who are presiding over the explosion in their usage. It is very clear why they are required: the Trussell Trust has made it plain that the vast majority of people who use them do so because their benefits have been changed or stopped.
The emerging trend—at 22%, up from 15% last year—is for the recipients of food parcels to be in work. They are earning a living, but it is insufficient to pay for something as fundamental as food. That should surprise none of us, because we now know that, under this Tory Government, 13 million people in Britain are in poverty while in work. They are earning their poverty in this country, and that scandal and disgrace should shame us all.
(10 years, 7 months ago)
Commons ChamberLabour Members broadly support the Bill, but, along with others, I shall seek to make improvements to it in Committee. It is an important Bill which gives vital borrowing powers to the Welsh Government, and paves the way for Welsh control of business rates, stamp duty and—if it is voted for—a referendum on income tax. It is also the first piece of Wales-specific legislation that the Tory-led Government have produced in four years.
There is a great deal to welcome, but I want to concentrate on the proposed borrowing limits. I am keen to establish a clear blueprint in relation to the borrowing powers and the consequences for the Assembly Government: a business plan, as it were, providing the flexibility that is necessary to meet the requirements of a modern financial system, especially given the maturing role of the Welsh Assembly.
The capital budget of the Welsh Government has already been reduced by nearly 40%, which has resulted in even greater hardship for the citizens of Wales and further swingeing cuts in public services. Borrowing powers are essential to the Welsh Government, and will be increasingly important to future Administrations. They must have the flexibility that will allow them to react to changing markets, and to make the long-term adjustments that will be required if they are to meet the challenges ahead. The M4 relief road is just one example of the infrastructure projects that the Welsh Government might choose to fund if they were in a position to borrow appropriate moneys; adequate borrowing powers will ensure that other equally important projects can be funded.
Labour Members recognise that some limited powers are on offer, but they are just not enough. We have serious reservations about the amount, the rules governing the settlement, and the unfavourable comparisons to other devolved bodies. Along with my colleagues, I shall be keeping a watching brief on the borrowing powers settlement as the Bill progresses. The Bill states that a limit of £500 million will be imposed for current spending, to cope with the fluctuations in, for instance, tax receipts, along with another limit of £500 million for capital projects. Again, that is simply not enough. The settlement for Northern Ireland, whose population is less than half that of Wales, gives it the capacity to borrow up to £2 billion, a sum that is a great deal larger than the one that is considered appropriate for Wales. That, too, is unacceptable.
As the Minister will no doubt recognise, I am very sceptical about the proposed borrowing levels. In evidence to the Welsh Affairs Committee the Minister said the borrowing limit would increase to £1 billion if further income tax powers were devolved. In addition, further clarification was sought at a recent Welsh Grand Committee. At the morning sitting on 5 February this year, several of my colleagues sought clarification of how the £500 million borrowing limit had been reached. Despite being given ample opportunity to share the formula for how this limit for Wales was reached, the Welsh Secretary avoided giving a definitive answer. It appears there is still some vagueness in this key area.
I feel like one of these children in a classroom: did any other Member sit with a child next to them who had his hand around his work because he did not want to show his workings out so we could copy them? The Minister is a little bit like that. We would like to see how he did his workings out—how he reached those numbers, how they are going to affect us in Wales and how we can improve them.
It has been suggested by the Silk commission that the borrowing settlement for Wales be based on the Scottish model, but we have again heard today that Scotland has a higher limit: it can raise up to £2.2 billion. It is not right to say that we are on a similar level to Scotland or Northern Ireland. We are at a disadvantage and there seems to be some confusion.
I looked at the Wales Bill financial empowerment and accountability document published by the Government and I think the Secretary of State set out his workings here very clearly. According to my reading of it, the borrowing level relative to the revenues is more generous than that applicable to Scotland. I may have misread it, but that is my reading of the document. Perhaps the hon. Lady should take a look.
I thank the hon. Gentleman for his intervention and I will look at those figures again. I must say they were a bit of a challenge and I do not consider myself an unintelligent person. I think there are questions we have to ask, and this is the place to ask them. Again, we come back to the Northern Ireland question: why can Wales not be trusted to raise the money it vitally needs and will be needing in the future? When the formula is applied to Wales, the sums simply do not add up. I seek further clarification from the Minister on this matter.
I appreciate that when stamp duty and landfill tax are devolved, that will provide the Welsh Government with an independent revenue stream worth around £200 million a year. However, these taxes will not be devolved until April 2018, four years from now. We have to have the borrowing powers now. We have to have them set at a level that is appropriate for us in Wales and that will allow us to grow and develop. We need those resources as soon as possible to mitigate the effects of Tory cuts to the Welsh budget. As the party of devolution, we cannot accept a settlement that places us in a restrictive position regarding borrowing.
I thought I heard the hon. Lady say that there had been Tory cuts to the Welsh budget, but as far as I am aware there have not been any cuts whatsoever to the Welsh Assembly budget; it has remained at the same level over the last few years.
Well, out there on the streets life is very tough and I think the hon. Gentleman is wrong. I disagree with him: we are living every day with the effects of Tory budget cuts—long term, every day—and perhaps we should discuss this further in a different debate under different circumstances. I disagree with the hon. Gentleman on that matter.
Wales deserves the very best settlement, so we shall address this Bill positively while being ever conscious that it needs to reflect the evolving demands of an emerging Government. Welsh Labour and the Labour-controlled Welsh Government always have served, and always will serve, the needs of the people of Wales, encouraging greater self-determination for our citizens and ensuring that adequate powers are devolved whenever possible. I welcome the Bill, and I will support aspects of it, but I ask the Minister to address the issue of the borrowing powers.
(12 years, 7 months ago)
Commons ChamberAs we know, economic growth is one of the ways we can improve infrastructure in Wales, but to do so we need a modern railway, and that means electrification as far as Swansea. What impact assessment has been made of the effect on the commuter and holiday trade of rail electrification to Swansea?
I commend the hon. Lady for her interest in this matter on behalf of her constituents and can assure her that we remain very interested in the electrification of the line and are working closely with the Welsh Assembly Government to develop the business case. [Interruption.]
(12 years, 8 months ago)
Commons ChamberI am going to take things up a level by talking about the biggest issue in my constituency. I appreciate the words that have preceded my contribution, but everywhere I go in my constituency I encounter frightened people. They are concerned about the benefit cuts and about the information that they are receiving from Jobcentre Plus, and they are afraid. These are not workshy, feckless people; they are hard-working families in my constituency, and they are facing unparalleled threats to their future. Every day, wherever I go, people stop me to ask questions and talk about what is going to happen to them. I talk to families who now rely on bargain stores, no longer shop in the large supermarkets and put things back on the shelf because they can no longer afford them. They have to make serious decisions about what they need to have and what they cannot have, and I am concerned about future generations.
New food banks are being set up across the country at a growing rate of one and a half every week. A new one is being set up in Caldicot in my constituency. Does my hon. Friend agree that that is a real sign of the growing food poverty in this country under the policies carried out by this Government?
I agree with my hon. Friend and I appreciate her words. We have a wonderful food bank in Swansea. It was the food bank for Gorseinon and was doing sterling work—I have supported it 180%— but it is now expanding to cover the whole city and I would like to praise it for its work and determination.
People are struggling, and when we realise that, on average, 25% of any family’s income goes on keeping a roof over their head and 20% is spent on food and essential items, we can see that that does not leave a lot at the end of the week. People are struggling and families have to make tough decisions. It does not take a genius to realise that that they end up robbing Peter to pay Paul, which results in even more problems for us to solve as a community.
Labour has always believed that the best way to tackle poverty is to provide meaningful work and to move families forward and out of poverty. Supporting mothers is a very important aspect of that and we must think about the effect that the introduction of universal credit will have on such families, and in particular on women. Wales is one of 12 regions in the UK and will be the fifth worst loser in this.
There was a great fanfare on Tuesday about a new coalition of charities and organisations that have come together as Cuts Watch Cymru, including Oxfam and Save the Children—names which are well known in our communities and belong to reputable organisations. When we read their document, which talks about the momentous effect that the cuts will have on generations to come, we have to sit up and listen. This is not babble or chatter: low-income parents are facing potential losses.
I have read the report that the hon. Lady mentions and I am absolutely disgusted by its contents. The scaremongering within the report is utterly unacceptable, and the conclusion states:
“Despite the paucity of evidence”—
the paucity of evidence—
“we can nevertheless conclude that welfare reform is likely to have a serious effect on people in Wales.”
That is not a serious report; it is Labour party propaganda disguised behind the charities that the hon. Lady mentioned.
The hon. Lady is making some very important and pressing points, but how will the Labour party’s policy of a regional benefit cap help the situation?
We must consider this in the round, because we need to tackle some of the problems we have. It is not easy and I do not say that we have the answer, but we must look at all the avenues. I support that policy, but I am watching it very carefully. We need to do that and we need to see how it would work.
The minimum number of working hours has gone up from 16 to 24 a week, and what a problem that has created. It has created problems for the employers in my constituency who are willing to employ people part time but cannot increase their hours.
Is my hon. Friend aware that although there is a willingness to discard the increase in hours for people who have a disability, carers of people with a disability will still be expected to work 24 hours a week? It will be impossible for many of them to combine their caring responsibilities with working those 24 hours. They will lose their income and will be plunged into poverty.
My hon. Friend makes an excellent point and that, again, affects people with families. Not only is that unacceptable but we must ask: what about child care costs? Companies are already telling us that they cannot increase people’s working hours, so people and families will be penalised by losing payments. That brings me back to the following point: these people are not workshy or feckless—words that we hear so often now in the press and in this Chamber—but hard-working families.
I will not on this occasion because others want to speak.
I have been appalled by how child care costs have gone up. We asked the Library to check out the prices of child care in Wales and it found that the cheapest is, on average, about £90 a week and the most expensive is £190 a week, so there is an issue with getting access to child care. I am very concerned by the anecdotal stories I hear from mothers who are being told that they have to return to work when their child is five years old. When they explain that they have child care difficulties, they are asked—this is anecdotal and I am in the process of checking this out—why they cannot leave their children with older siblings. I am really concerned about that.
Certainly.
We have to make sure there is fair play for families. We have already got scared families and most of my constituents do not have the safety net of savings. They have always worked for an honest day’s pay, but that has not left them with a great deal to save. That, in itself, has been a challenge for them. They are left to worry and are concerned about all these things.
The Union of Shop, Distributive and Allied Workers and Unison have recently issued information to their members and have asked them to come forward and get help from them as unions. We are all getting ready for a huge change in our society, which is going to have a long-lasting effect. I do not think that is being over-dramatic or putting things too strongly, and I remind the House that not everybody who claims help and receives benefit is not deserving of it. They are families who are under severe pressure and I see them every day in my constituency. They are out there and they are relying on us.
The choir were absolutely superb, and they were from my hon. Friend’s constituency, or possibly from that of the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards); there is some debate.
Last night was a success, but I would like to turn my attention to something else. I intervened on the hon. Member for Swansea East (Mrs James) in relation to the Cuts Watch Cymru report that was published on Tuesday. I was dismayed by the publicity that the BBC gave the report, because it made no mention whatever of the fact that at least 10 of the 19 organisations that subscribed to the report are in receipt of Assembly funding. I am also concerned that the report made no mention whatever of one of the most dangerous proposals that I have heard in this House, which is the Labour party’s proposal to introduce a regional benefits cap. I was in this Chamber when we debated the benefits cap, arguing in favour of a £26,000 cap, which is equal to £35,000 a year, which would be a high cap in Wales. However, it is important to point out that when that debate was held in this House—when the Labour party had proposed a regional cap—there was not a single Welsh Labour Member in attendance. I would like to know whether they were in favour of a regional benefits cap or opposed it. There is no mention of that in the Cuts Watch Cymru report.
What we get in the report, time after time, are statements that are frankly absurd, and which are in no way, shape or form supported by any facts. For example, when the report—which I have here—talks about the changes to jobseeker’s allowance, it says:
“The impact of changes to JSA are far from clear.”
It goes on to say that it is not clear how the changes to income support will affect claimants—and this is supposed to be a serious piece of work.
I am grateful for that intervention, but when the report was covered by the BBC—the people responsible for the report are the Bevan Foundation, a mysterious organisation funded by Blaenau Gwent council; indeed, I think the president is a certain Lord Kinnock, who used to have some political affiliation with the Labour party, I believe—its statements and predictions about the future of Wales under the welfare reform changes that we are proposing as a Government were presented as factual. Yet when one reads the report, one finds no evidence. My point, first, is that when those organisations—well-respected organisations, as the hon. Lady pointed out—create such reports, they give credence to the scare stories about our welfare reform proposals. Those stories make people feel scared and vulnerable, even though they have no reason to feel that way because the welfare reform changes that this Government are introducing are long overdue, supported by the people of Wales and necessary in Wales. We want people to once again be better off working, but those who are unable to work to be protected. Our proposals will ensure that those who are unable to work will be protected.
For example, we hear time and again about the impact of the proposed changes on the sick and vulnerable in society. Yet the truth of the matter is that, for example, the number of cancer patients in the support group—which means that they will not be subject to any changes—will increase from 67% under the previous Government to 75% under this Government. That is a change that is a positive; that is a change that protects the vulnerable.
(13 years, 4 months ago)
Commons ChamberI commend the efforts that the hon. Gentleman is making on behalf of his constituents. Of course, as he knows, and as the Secretary of State made clear when she addressed the Swansea Business Club, the issue of electrification to Swansea is not closed. It is a matter for local government, this Government and, indeed, the EU to consider what options can be pursued to ensure, if possible, the electrification of the line to Swansea.
We have heard a great deal about the electrification to Swansea, but have we thought about freight? More tonnage is carried between Llanelli and Cardiff than between Bristol and Swindon, so freight is really important along that line. I am very concerned that all the calculations have been based on passenger figures.
(13 years, 6 months ago)
Commons ChamberI thank my hon. Friend for his kind remarks. I know that he has a great deal of expertise in this area. An independent estimate in 2009 projected that superfast broadband in the UK could create up to 600,000 jobs and add £18 billion to GDP. We are working closely with the Department for Culture, Media and Sport and the Welsh Assembly Government to ensure that Wales benefits fully. Based on the population share, we estimate up to 30,000 new jobs being created and a possible £900 million of additional wealth being generated in Wales.
I am sure the Secretary of State will join me in congratulating Virgin Media on rolling out in Swansea this week the fastest broadband speeds in the UK. It is not just a rural problem. We have heard about the economic case. How quickly can we roll out these speeds to other parts the Principality?
I was particularly pleased that we were able to announce on 10 February £10 million of funding to support the extension of superfast broadband to Pwllheli. I know from working with colleagues in the DCMS and the Welsh Assembly Government that more announcements on this front will be made later this year. The hon. Lady is quite right on this issue, and I am particularly keen because broadband take-up in Wales is at 64% in comparison with 71% in the rest of the UK. Broadband take-up in rural Wales, however, is in excess of that in urban Wales, so I am very pleased to welcome Virgin Media’s announcement.
(13 years, 9 months ago)
Commons Chamber1. What recent discussions she has had with the Secretary of State for Transport on the electrification of the great western main line.
6. What recent discussions she has had with the Secretary of State for Transport on the electrification of the great western main line.
I have many discussions about this matter, and I remain fully supportive of electrifying the great western main line.
I hear the hon. Gentleman, and I am pleased to agree with him that good infrastructure will be of great benefit to our economy in Wales. However, I should remind him that his party had 13 years to electrify the great western line to Swansea, yet failed to electrify a single inch.
I am sure that the Minister is aware that electrification of the south Wales main line to Swansea is vital, especially for the economy of the city, but also for the economies of west Wales. The recent Centre for Cities report forecast that Swansea would face severe challenges during the recovery period. Given that news, does she agree that rail electrification to Swansea is even more vital to local businesses and citizens in the region?
(13 years, 11 months ago)
Commons Chamber1. What recent discussions she has had with the Welsh Assembly Government on the implementation in Wales of the Sunbeds (Regulation) Act 2010.
The Secretary of State and I have a wide range of discussions with Welsh Assembly Government Ministers on a range of issues relevant to Wales. The Sunbeds (Regulation) Act 2010 will come into force in England and Wales on 8 April 2011. It will prevent people under the age of 18 from using sunbeds on commercial premises by making it an offence for sunbed operators to provide access.
I thank the Under-Secretary for that answer. As he is aware, my former colleague, Julie Morgan, the previous Member for Cardiff North, and I fought long and hard for the Act. It is vital that we stop under-age use of sunbeds. The Minister for Health and Social Services in Wales is determined to introduce the principle as a matter of urgency. The introduction of the Act on an England and Wales basis is vital. I urge the Under-Secretary to press UK Ministers for action and to keep the issue at the forefront of the public health debate.
I commend the efforts of the hon. Lady and Ms Julie Morgan in drawing this important public health issue to our attention. As the hon. Lady is aware, the Welsh Assembly Government intend to introduce regulations in 2011 further to regulate sunbed businesses in Wales only, on which they are consulting. This significant measure is aimed at protecting young people, but it also concerns a public health issue for older people. Sunbeds pose a cancer risk and, to be frank, frequently do not produce a very good look.