Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 17th October 2012 Commons Chamber

[Dr Hywel Francis (Aberavon) (Lab)]

2. What recent discussions he has had on the future of the steel industry in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

I have had regular discussions with ministerial colleagues on issues that affect Wales, including the future of the steel industry.

[Dr Francis]

I thank the Minister for his reply. May I warmly congratulate him and his colleague on their new positions, which I believe were as a consequence of their apprenticeships on the Welsh Affairs Committee?

Tata Steel is a major investor and employer in my constituency. Nearly £250 million has been invested recently in the steel plant at Port Talbot, which is strongly supported by the Welsh Government, the local council, the local trade unions and the local management. This is a strong regional partnership, so what will the Wales Office do to assist the steel industry in these challenging times? Will the Secretary of State speak to the Business Secretary, his Cabinet colleague, to address the issue of a level playing field in energy costs? Will he visit the steelworks in my constituency at the earliest opportunity?

[Stephen Crabb]

I thank the hon. Gentleman for his question and for his kind remarks. One of the most enjoyable parts of my first term in Parliament was serving under his chairmanship on the Welsh Affairs Committee.

The Government absolutely recognise the strategic importance of Tata Steel as an inward investor into Wales, and the Wales Office has close links with the company. I will certainly speak to the Business Secretary about what more we can do to support Tata’s inward investment. We do recognise that particular issue associated with energy costs. That is why we have made £250 million available for intensive energy users, and I hope that the hon. Gentleman and industries in Wales will be making representations about how they can benefit from that money.

[Michael Fabricant (Lichfield) (Con)]

As my mother comes from Aberavon, I understand only too well the importance of the steel industry and I congratulate the hon. Member for Aberavon (Dr Francis) on asking his question. Does my hon. Friend the Minister agree, however, that the great news we have received today that employment in Wales is up by 40,000 and unemployment down by 7,000 is a good start?

[Stephen Crabb]

The labour market statistics for Wales were particularly good today. Unemployment and worklessness are down and overall employment levels are up. There are great reasons for optimism, but there is no reason to be complacent.

[Kevin Brennan (Cardiff West) (Lab)]

3. What steps he plans to take to promote the Prime Minister’s respect agenda in dealings between the UK Government and the Welsh Government.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

4. What steps he is taking to promote enterprise zones in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

I am strongly committed to working with the Welsh Government to encourage private sector investment and growth in Wales, including promoting enterprise zones in Wales.

[Andrew Selous]

Is it not important to have a much closer working relationship between the Governments in London and in Cardiff in respect of enterprise zones, so that we can make faster progress in creating jobs and wealth in Wales?

[Stephen Crabb]

My hon. Friend is exactly right: it is vital that the two Governments—the UK Government and the Welsh Government in Cardiff—work together on a range of issues, not least the success of enterprise zones. I am committed to doing that, and I look forward very much to my first meeting with the Welsh business Minister, Edwina Hart, which is to take place shortly.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Minister will be aware that having the Bristol enterprise zone alongside the tolls on the gateway to the south Wales economy is a major impediment to inward investment and growth. Will he therefore ask Treasury colleagues to commission a study to see whether a reduction in the tolls would be more than compensated for by an increase in income tax resulting from new jobs created by inward investment?

[Stephen Crabb]

My right hon. Friend the Secretary of State is to discuss tolls on the Severn bridge with our right hon. Friend the Secretary of State for Transport this afternoon. No decisions have been made beyond 2018, when the current concession ends. Clearly there is a lot to discuss in relation to how we maximise the benefits of inward investment in Wales.

[Jonathan Evans (Cardiff North) (Con)]

Does my hon. Friend agree that the objectives of the Cardiff Central enterprise zone are much more likely to be realised now that the coalition Government have granted £11 million to the city of Cardiff to make it one of the most digitally connected cities in the world?

[Stephen Crabb]

My hon. Friend is exactly right: the £11.7 million that we have made available to Cardiff to support its development as a superconnected city will make it one of the most digitally advanced cities in the United Kingdom, and we look forward to that helping to leverage new business investment into the city.

[Nia Griffith (Llanelli) (Lab)]

I very much welcome the Minister’s positive words about the Welsh Assembly Government’s work with enterprise zones and, indeed, full co-operation on measures to help the economy, but will he join me in congratulating Welsh Assembly Government Ministers on creating 1,700 youth jobs in the past six months, in an effort to tackle the scourge of underlying youth unemployment in Wales? Will he tell his Cabinet and Front-Bench colleagues how Wales is leading the way in this and that they should never have got rid of the future jobs fund?

[Stephen Crabb]

I thank the shadow Minister for that question. I welcome any new jobs being created that will tackle long-term youth unemployment in Wales. I am just disappointed that she has not welcomed today’s news that unemployment has fallen in Wales, employment is up and worklessness is down.

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

12. Enterprise zones are a fantastic success in England, but their success in Wales has been somewhat limited. Enhanced capital allowances can play a significant part in attracting inward investment to enterprise zones, so is my hon. Friend somewhat disappointed and dismayed that the Welsh Government have not sought to communicate with the Treasury about where they would like to bring this tax advantage in Wales?

[Stephen Crabb]

The discussions about the use of enhanced capital allowances in conjunction with other forms of regional aid are continuing with colleagues in the Treasury, but we look forward very much to seeing specific proposals from Welsh Ministers on how they envisage enterprise zones developing in Wales.

[Mrs Madeleine Moon (Bridgend) (Lab)]

The most enterprising company in my constituency, Biotec Services International, is being prevented from developing because it cannot get export licences for growth hormones from the Home Office. I have written to the Home Office. Will the Minister take an interest in this matter so that this unique Welsh company does not lose its opportunity to grow and develop for Wales?

[Stephen Crabb]

I am concerned to hear that from the hon. Lady. I note that she has written to the relevant Minister, but if she would like to write to me as well, I will certainly look into the matter and see that she gets all her questions answered.

[Karen Lumley (Redditch) (Con)]

5. What steps his Department is taking to increase the level of inward investment into Wales.

--- Later in debate ---

[Karl MᶜCartney (Lincoln) (Con)]

6. What discussions he has had with the Secretary of State for Education and others on the role of Ofqual in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

My right hon. Friend the Secretary of State for Wales has regular discussions with the Secretary of State for Education. For clarity, Ofqual is the independent regulator of qualifications in England. It is the Welsh Government who regulate qualifications in Wales.

[Karl MᶜCartney]

Does the Minister share my concern that a dangerous precedent is set when Ministers take it upon themselves to mark exam papers?

[Stephen Crabb]

My hon. Friend makes his point. Much has been said about that and I do not want to add to it today, other than to say that it was unfortunate that the Welsh Government acted unilaterally on the matter. The key point is the ongoing review of qualifications in Wales and the proposals from my right hon. Friend the Secretary of State for Education for new qualifications at 16 in England. It is important that parents and pupils in Wales have confidence that their qualifications will be respected and robust, and that they will be able to take them to institutions and employers in England, where they will be respected.

[Mr Shailesh Vara (North West Cambridgeshire) (Con)]

7. What discussions he has had with ministerial colleagues and others about foreign direct investment in Wales.

--- Later in debate ---

[Chris Evans (Islwyn) (Lab/Co-op)]

8. What assessment he has made of the potential effects of reductions in housing benefit in Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

Information on the expected impact in Wales and across Great Britain of our housing benefit reforms is set out in the impact assessments. We are taking urgent steps to manage housing benefit expenditure, providing a fairer and more sustainable scheme by ensuring people who receive it have to make the same choices about housing as people who do not.

[Chris Evans]

Will the Minister please explain why 17-year-old Shanika Roberts, who faces being made homeless because of this Government’s cuts to housing benefit, should move in with her friend?

[Stephen Crabb]

Some £21 billion is currently spent on housing benefit, and the figure will go up without the reforms we are putting in place. I ask the hon. Gentleman this: what is fair about 100,000 people in Wales languishing on waiting lists, often in cramped accommodation, while others live in houses with empty rooms that are larger than they need?

[Mr David Nuttall (Bury North) (Con)]

In view of the fact that £8.7 billion is spent on benefits in Wales every year, and nearly £1 in every £8 of that—£1 billion—is spent on housing benefit alone, is the taxpayer not entitled to expect value for money?

[Stephen Crabb]

The taxpayer is absolutely entitled to expect value for money, and I hope that my hon. Friend will appreciate the fruits of our welfare reforms coming through in Wales, as borne out by today’s labour market statistics.

[Guto Bebb (Aberconwy) (Con)]

10. What discussions he has had with the Secretary of State for Transport on capital investment in rail infrastructure in Wales; and if he will make a statement.