Support for the Welsh Economy and Funding for the Devolved Institutions

Simon Hart Excerpts

Tuesday 5th July 2022 Commons Chamber

[The Secretary of State for Wales (Simon Hart)]

I join the chorus of compliments directed at my right hon. Friend, and neighbour, the Member for Preseli Pembrokeshire (Stephen Crabb) for his part in this debate and, indeed, in chairing the Welsh Affairs Committee, which he does with absolute skill and aplomb. I was struck by a few points he made. He referred to the inflationary pressures that are on the UK at the moment being a global phenomenon, rather than a UK-based or even a Wales-based one. He mentioned the Opposition’s claims about underspend or underfunding, which seemed to vary according to which speaker was on their feet, with one or two Labour Members referring to £1 billion and others from the SNP referring to £700,000. It seems that they cannot even agree among themselves exactly what their line of attack is.

I was particularly struck by my right hon. Friend’s comments about the Crown Estate and devolution. Having had many meetings with the Crown Estate, a number of stakeholders and potential investors who were floating offshore wind, I am as excited as he is by the prospect of some 10,000 of the 29,000 jobs that might be associated with this scheme coming to Wales. Of all the potential investors, and many of the local supply chain businesses that we will rely on, not a single one has ever mentioned to me that their opportunities would be enhanced by devolving the Crown Estate. [Interruption.] If the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) does not like what I say, perhaps she might trust some of the people who have real expertise and who are really optimistic about bringing well-paid, skilled jobs to Wales. It is they whom we should be listening to, rather than necessarily a separatist movement.

[Liz Saville Roberts]

rose—

[Simon Hart]

I will keep pressing on, because we do not have a lot of time. My old friend and neighbour, the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), and I have had this exchange about separatism versus Unionism many times, but until such time that he can explain to me why it is apparently essential for the future of Wales that we leave the UK, while simultaneously apparently just as essential that we rejoin the EU, I will never be able to take his economic lectures as seriously as I know he would like.

My hon. Friend the Member for Aberconwy (Robin Millar) made a telling contribution about tourism and hospitality, particularly along the north Wales coast, and demonstrated his strong advocacy as far as a low-tax economy is concerned.

If the ambition of the hon. Member for Cynon Valley (Beth Winter) is to wind me up, she does it remarkably well, whether in the Welsh Affairs Committee or here. In her praise for the performance of the Welsh Government, it was telling that there was no reference to health outcomes or educational outcomes in Wales. It was also telling, as I challenged her last time about this, that she never mentioned the fact that I would love to join her in a letter to the First Minister suggesting that the £96 million-worth of extra Members of the Senedd that she advocates for so passionately instead be spent on job creation in the Cynon Valley. My offer is still open to her. That would be a better use of the funds we are talking about.

My hon. Friend the Member for Clwyd South (Simon Baynes) made an interesting contribution about the geographical spread of the shared prosperity fund, referencing joint bids between local authorities and the new opportunity for MPs across the House to endorse or contribute to the bids. I thought his point about the Union relevance of infrastructure—we could quote any number of examples, whether road or rail—was telling and important.

Turning to the hon. Member for Ceredigion (Ben Lake), all I can say is that he made, as he often does, a measured and sensible contribution around the rural fuel relief scheme, and my pledge from the Dispatch Box is to talk to him and his colleagues further about how we can tackle that problem.

The hon. Member for Aberavon (Stephen Kinnock) put in a strong case for sycophantic speech of the year. That was a great effort. He went all-in on tax rises, but did not mention that the two most recent contributions of Labour in Wales on tax were introducing a tourism tax, which is widely considered to cripple tourism in Wales—that was not mentioned; I cannot think why—and the latest ruse about a deposit return tax, which would damage, for example, a number of vineyards in Wales. His long list of, basically, free stuff to anybody would not have been that long if the Welsh Government were responsible for raising that money, either by private taxes or by business taxes. He never mentioned that. I wonder whether this obsession with free stuff would be so easy if there was some accountability about raising the cash in the first place.

Nearly finally, there was more in the speech of the hon. Member for City of Chester (Christian Matheson) about which we agree than disagree—I am not sure how pleased he will be about that. We have a closely shared ambition on Union connectivity, and I absolutely agree with the significance he attaches to that. We might have a different means of reaching that particular objective, but I agree with him, and I would like to have further conversations with him and colleagues in the north Wales area to see where we can take that.

Finally, with the speech of the hon. Member for Gordon (Richard Thomson) from the SNP, I almost reached a new record, as it contained nothing upon which we agreed. That is not to be in any way critical. He illustrated to me how separatism and nationalism—whichever description he would care to attach to his particular political party—would be one of the most significant threats to Wales that I can think of, were it ever to be deployed in our country.

I want to finish, with huge thanks to you, Mr Deputy Speaker, my right hon. Friend the Member for Preseli Pembrokeshire and other contributors to the debate. We are in danger of painting a gloomier picture than we need to—of course, we have to be realistic—if we listen to the expectations for Wales of the hon. Member for Cardiff Central (Jo Stevens). As Airbus recently demonstrated, Wales is a fantastic place to invest vast sums of money and create hundreds of new highly skilled jobs—there are many such examples, large and small, across the whole country. People are looking to us in Government, and the hon. Lady in Opposition, to create the circumstances to make that possible. We can do that. It is not without its challenges—nobody, from the Chancellor down, is suggesting for one minute that it will be an easy ride—but I urge the hon. Lady to join us in our endeavour to make sure that levelling up is the success that it deserves to be.

Devolution in its truest sense is about involving the widest number of people with expertise across the whole geographical area of Wales. The great thing about the levelling-up fund is that, for the first time ever, it does exactly that. It reaches into local authorities and local communities across the length and breadth of Wales. That has never been done before, and it is revealing that the Welsh Government were advocates of devolution, as we heard from the hon. Member for Aberavon, until such time as we said, “Yes, that’s a good idea. Let’s involve some more people. Let’s involve people who have hands-on daily experience of the pressures facing their communities where deprivation is at its most acute”—that is what we are attempting to do.

It seems odd that Labour in Wales is so paranoid and disrespectful of local authorities, some of which wear the same political colours. For some inexplicable reason, Labour Members seem nervous of allowing devolution to extend beyond the Cardiff postcode. We do not believe that; we trust local authorities, stakeholders and universities—all those people who make our economy and our society tick. That is why levelling up will be a success. If it was simply a means of transferring a postcode from SW1 to CF16 or whatever it might be, it would be a failure. The Welsh Government need to stop being so paranoid and join the endeavour to level up Wales in the way that they have failed so spectacularly to do for 23 years.

[Mr Deputy Speaker (Mr Nigel Evans)]

With the leave of the House, I call Stephen Crabb to wind up.