Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 24th February 2016 Commons Chamber

[Edward Argar (Charnwood) (Con)]

1. What discussions he has had with his ministerial colleagues on proposals for a Cardiff city deal.

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

The Cardiff city deal represents a once-in-a-generation opportunity to raise growth levels right across the region, securing Cardiff’s position as one of the best capital cities in Europe and a fantastic place in which to do business. Yesterday, my right hon. Friend the Secretary of State for Communities and Local Government and I met leaders from the Cardiff capital region to discuss the city deal and to ensure that progress and momentum are being maintained.

[Edward Argar]

My hon. Friend the Member for Cardiff North (Craig Williams) has long championed the city deal to help deliver even greater success for Cardiff and Wales, but for it to succeed everyone must be as committed to delivering for Cardiff as he and the Secretary of State so clearly are. What assessment has the Secretary of State made of the Welsh Assembly Government’s commitment to this city deal and particularly their commitment to funding it?

[Stephen Crabb]

I thank my hon. Friend for his question. I discussed the Cardiff city deal proposal on Monday with the First Minister, and I am pleased and reassured that all parties are now strongly committed to it. I think that there are still some questions to be asked about the nature of the financial commitment coming from the Welsh Government, but there is now momentum behind the deal and we look forward to getting it secured as soon as possible.

[Jo Stevens (Cardiff Central) (Lab)]

On financial commitment, last month, I asked the Secretary of State whether his Government would match the £580 million that the Welsh Government are putting towards the Cardiff city deal. Has he got a cheque from the Chancellor yet?

[Stephen Crabb]

I am slightly surprised by the hon. Lady’s tone. We have already put £125 million on the table to help with rail electrification. The Welsh Government may want to put that into the pot. We have already put £50 million towards the compound semiconductor catapult centre in Cardiff. There is no question mark over our commitment to securing an ambitious city deal for Cardiff. As I have said, there are some questions about the nature of the Welsh Government’s financial support for such a deal, but I am sure that, with the correct attitude, we can work through those issues and land a deal.

[Craig Williams (Cardiff North) (Con)]

I am sure the Secretary of State will join me in welcoming the massive announcement that Aston Martin will be building its new vehicle in south Wales. Does that not emphasise the important nature of the private sector involvement in the city deal, and what is he doing to ensure that the Welsh Government and local authorities engage with the private sector so that they lever in more money?

[Stephen Crabb]

My hon. Friend is absolutely right. First, though, let me put on record our congratulations to him and his wife, Clare, as it is a few days after the birth of their second child. It is wonderful to see him taking a break from paternity leave to stand here today championing the interests of his constituents in Cardiff. He is absolutely right on two counts. The first is on the success of bringing the Aston Martin deal to Wales, which is a great example of the Welsh and the UK Governments working together in a true team Wales approach. The second is on the importance of business and the fact that it is right at the heart not just of helping to create the city deal vision, but of delivering it as well.

[Huw Irranca-Davies (Ogmore) (Lab)]

Let me pass on my congratulations to the hon. Member for Cardiff North (Craig Williams). I also congratulate the workforce in the St Athan area—in the seat of the Under-Secretary of State for Wales, the hon. Member for Vale of Glamorgan (Alun Cairns)—and the Welsh Labour Government on their support for that project, the Cardiff city deal and the Swansea city deal. Will the Secretary of State confirm that the support will be there for Cardiff and for the proposal by Terry Matthews for an “internet coast” that links Swansea and west Wales as well, as that is where we will drive the jobs into Wales?

[Stephen Crabb]

The hon. Gentleman has raised a number of different initiatives all together in one question. The common thread running through them was the nature of partnership working, and we need to see more of that. I am talking about the Welsh Government, the UK Government and local partners all working together. The Aston Martin deal shows the fruit that can be borne when we have the right kind of attitude and commitment from the Prime Minister, the First Minister, the Ministry of Defence and excellent local MPs such as the Under-Secretary of State for Wales. I have discussed the Swansea city deal with Sir Terry Matthews. We are really interested in understanding it in a bit more detail, and we want to work with the Swansea city deal partners as well as our partners in Cardiff.

[Michael Fabricant (Lichfield) (Con)]

Is it not the case that Aston Martin moved to St Athan in the Greater Cardiff region partly because of the success of organisations such as Superfast Cymru, which is delivering fast broadband, and particularly because of the skills that now exist in south Wales?

[Stephen Crabb]

My hon. Friend, who has a great love for and knowledge of Wales, is right. The most important thing for securing big inward investment projects such as Aston Martin, or the continued inward investment of companies such as Airbus, is the excellence of the skills and the workforce that we have now in Wales. We are not complacent about that. There is more progress that could be achieved, but the reason that such companies choose Wales over locations all round the world is the quality of the skills of the workforce, the quality of the infrastructure and the UK Government’s commitment to creating the best environment for economic growth.

[Rehman Chishti (Gillingham and Rainham) (Con)]

2. What recent assessment he has made of trends in the level of employment in Wales.

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[Craig Tracey (North Warwickshire) (Con)]

5. What assessment he has made of the effectiveness of steps taken to rebalance the economy in Wales.

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

This Government know that supporting our manufacturing industry is vital for rebalancing the economy. Despite challenging global conditions, we have seen 12,000 new manufacturing jobs created by businesses in Wales since 2010, reversing the decline we saw under the previous Labour Government.

[William Wragg]

I thank my right hon. Friend for that reply. How will small businesses in my constituency and in the north-west of England be able to benefit from the economic recovery in north Wales?

[Stephen Crabb]

My hon. Friend is absolutely right about the strength of the economic recovery in north Wales. When I travel around Wales, I see that much of what is innovative and exciting is happening in north Wales. We are clear that the economy of north Wales is integrated in a single entity with the economy of north-west England, so there are lots of opportunities for small and medium-sized businesses on both sides of the border to benefit from the emerging northern powerhouse vision. I met the North Wales Business Council earlier this month and, like businesses across north Wales, it is calling out to be part of the northern powerhouse.

[Craig Tracey]

Does the Secretary of State agree that the success of the manufacturing industry in Wales, and across the rest of the UK, reflects a growing global demand for our products and is further evidence of the success of the Government’s ambitious Exporting is GREAT campaign?

[Stephen Crabb]

My hon. Friend is absolutely right; there is enormous and growing global demand for high-quality products manufactured in Wales. The Government have set ourselves really ambitious targets for increasing the level of UK exports, and I am clear that I want to see Welsh business sharing in that export surge. That is why UK Trade & Investment’s Exporting is GREAT roadshow truck will be in Deeside in north Wales tomorrow, explaining to small businesses there what export opportunities there are around the world.

[Albert Owen (Ynys Môn) (Lab)]

One way to rebalance the economy is to decentralise enterprise and services. Therefore, why are the Government closing tax offices and courts in peripheral areas of Wales, given the impact that has on the economy? They talk about decentralisation, but they centralise services when they have the opportunity.

[Stephen Crabb]

The hon. Gentleman should understand that the Government have a sacred duty to take care of how taxpayers’ money is spent. Despite all the problems we were left with in 2010, the truth is that we maintain a very strong UK Government footprint in Wales, and the growth in private sector jobs in Wales over the past five years far outstrips any reductions we have seen in public sector employment.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Partial income tax powers are of course a welcome step in helping the UK rebalance geographically, but it is vital that those powers are accompanied by a fiscal framework that genuinely preserves non-detriment to Wales. Given the Scottish Government’s successful struggle to achieve a no-detriment agreement, what specific representations has the Secretary of State received from the Welsh Government on their chosen deduction method, and what is his chosen deduction method? Is it not the case that partial income tax powers make it more difficult to achieve genuine non-detriment?

[Stephen Crabb]

The hon. Gentleman is right about the need to get the details right—we have just seen a very prolonged negotiation on the Scottish fiscal framework—but that is further down the line. We still have an ongoing discussion with the Welsh Government. They want to avoid taking on any income tax powers whatsoever. They want to avoid the additional fiscal responsibility that that would entail. They are running from having that fuller financial accountability that we believe is really important for Welsh democracy.

[David T. C. Davies (Monmouth) (Con)]

14. Will the Secretary of State confirm that the Severn bridge is key to the economy of south Wales, that the debt will be paid back before the April 2018 prediction and that it offers a golden opportunity to reduce tolls for businesses and hard-pressed motorists in Wales?

[Stephen Crabb]

My hon. Friend, who chairs the Welsh Affairs Committee, has been persistent and effective in raising concerns about the burden imposed on businesses and motorists in Wales by the very high tolls on the Severn bridge. We have not made any final decisions about what will happen when the private sector concession ends at the end of 2017, but we and the Treasury will be very keen to hear any specific ideas that he and members of his Committee might have.

[Nia Griffith (Llanelli) (Lab)]

Last year, the Secretary of State said his ambition was to secure more balanced growth in the Welsh economy, but on his watch we are seeing the loss of hundreds of jobs in our strategically important steel industry. The Government are being painfully slow to heed our warnings on cutting energy costs, and weak and disingenuous when it comes to standing up to Chinese dumping. With EU backing given in December, how much longer will the Government delay the energy compensation package the steel industry in Wales so desperately needs?

[Stephen Crabb]

I am really disappointed by the slightly tribal and partisan tone the shadow Secretary of State adopts on this issue. If she wants to talk about what has happened to steel jobs under Conservative and Labour Governments, I am happy to do that, and we can talk about the decline in steel jobs on the watch of previous Labour Governments. I am much more interested in getting answers now to the global storm facing the steel industry. This Government have taken a lead in Europe in changing procurement rules and arguing for protection measures against Chinese dumping. We are making sure that the steel industry in Wales has the best possible chance of a sustainable and profitable future.

[Nia Griffith]

The Government also have a key role in commissioning large infrastructure projects, which can boost manufacturing and rebalance the economy. Manufacturers across Wales, who are gearing up in earnest to supply the Swansea bay tidal lagoon, share my deep concern that the Government are now planning a lengthy review, which could scupper the project altogether. Will the Secretary of State now give us an unequivocal guarantee that this vital project will not be sunk by his Government?

[Stephen Crabb]

I notice that the shadow Secretary of State did not stand up and welcome what we saw yesterday—Her Majesty the Queen naming and opening the new Elizabeth Crossrail line, which, by the way, uses 50,000 tonnes of steel made in Wales by Celsa Steel. The hon. Lady should be absolutely welcoming that as a good example of how UK infrastructure investment can drive growth in the steel industry. On the tidal lagoon review, the chief executive of the Swansea tidal lagoon has welcomed it himself. He welcomes the fact that we are looking into this and exploring all options to see whether the project can be financially viable.

[Mr Speaker]

We are all better informed, albeit at some length.

[Mr Speaker]

Order. The House and the nation should have heard Mr Howell, and I fear they might not adequately have done so. [Interruption.] No, it will do for today—as long as the Secretary of State heard. But courtesy dictates.

[Stephen Crabb]

I did not hear the full question, but what I did hear was a really important point about fairness when it comes to rebalancing the economy. Unlike previous Labour Governments, who stood by while the economy of the United Kingdom became hopelessly imbalanced towards London and the south-east, we do not think that is good enough. We think that there are talents and resources in the north of England, Wales, Scotland, Northern Ireland and the west of England that need to be captured and enhanced to drive growth in the UK.

[Dr Liam Fox (North Somerset) (Con)]

4. What assessment he has made of the potential effect of devolving air passenger duty to Wales.

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

This Government have a proud record on devolution in Wales: establishing the Silk commission, devolving landmark new fiscal powers and taking forward the St David’s day agreement through the new Wales Bill. In that agreement, we committed to consider the case for devolving APD to Wales and this work is currently being undertaken and assessed by the Treasury.

[Dr Fox]

Devolving air passenger duty will create a market distortion favouring a state-owned airport against a private one. It will damage the economic viability of Bristol airport and have consequential detrimental effects in the south-west. When my right hon. Friend discusses this with the Chancellor, will he gently reflect on the fact that, had our colleagues not made such great gains in the south-west, there would not be a majority Conservative Government?

[Stephen Crabb]

I am sure that my right hon. Friend, like me, welcomes the fact that the Government are cutting APD in all parts of the UK. However, let us be clear: I want Cardiff airport to be a success story, but I also recognise that there are serious concerns about the effect APD devolution might have on competition issues in relation to Bristol airport.

[Ian C. Lucas (Wrexham) (Lab)]

Is the Secretary of State aware that north Wales’s local airports are in Liverpool and Manchester? Will he pull his finger out and have meetings to improve connectivity to Manchester airport by rail from north Wales?

[Stephen Crabb]

I am very aware of the issues that the hon. Gentleman raises. I recently met the north Wales business council precisely to talk about the importance of a rail link from north Wales into Manchester airport. He makes an important point that we are very mindful of.

[Bob Blackman (Harrow East) (Con)]

6. What assessment he has made of trends in the proportion of households in Wales which are workless.

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[Ann Clwyd (Cynon Valley) (Lab)]

9. When he expects the report of the Macur review to be published.

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

Lady Justice Macur’s report is being considered as a matter of urgency with a view to publication as soon as possible.

[Ann Clwyd]

Eight young boys in my constituency were abused in the 1980s. They have waited all this time for some conclusions. It is ridiculous that in the past two months Government Departments have been sitting on Lady Macur’s report. What is going on? I understand that redactions are taking place. What confidence can we have that when the report is eventually published it is a true report without interference from Government?

[Stephen Crabb]

I thank the right hon. Lady for her question. We are discussing something incredibly serious and sensitive. Let me put on record my thanks to her for the tireless work that she has put in over the years to fight for justice for those who have suffered horrendous abuse. We are talking about some of the most shameful episodes in the history of the nation of Wales.

We have the report, and it is being looked at by the Crown Prosecution Service, the Director of Public Prosecutions and the police. Lady Justice Macur recommended to the Government that certain redactions might need to be made. The commitment that I give to the right hon. Lady and the House today is that we will make redactions only where they are absolutely necessary, and we will provide a full explanation of why we are making those redactions. We owe that to the victims.

[Hywel Williams (Arfon) (PC)]

12. Does the Secretary of State agree that there is concern about attention in the report to the language issue? The only attention that was given to the language issue in the Waterhouse report was to say that the children swore a great deal, as well they might have.

[Stephen Crabb]

The hon. Gentleman is getting into a level of detail about the matter that we can perhaps discuss outside this place on another occasion. Perhaps he and I could meet to talk about that.

[Hywel Williams]

The Wales Council for Voluntary Action criminal records unit, which provides free disclosure and barring checks for the third sector, will close on 31 May. The last paper application will be accepted this Friday. The WCVA has provided a bilingual service, which will cease on Friday. Does the Secretary of State share my concern about that cut?

[Stephen Crabb]

The hon. Gentleman knows that I want the Welsh language to flourish and be used on a day-to-day basis. I am not familiar with the case that he has raised, but if he wants to drop me a note, I will make sure that it is looked into fully.

The Prime Minister was asked—