Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 27th February 2019 Commons Chamber

[Alun Cairns]

The hon. Gentleman has raised an important point. I was in Japan last week when the ambassador received the news. It is necessary to recognise that this is nothing to do with Brexit; it is about changing market habits and about Honda’s changing approach. We have already been in touch with the Welsh Automotive Forum and are engaging positively with its members. The hon. Gentleman is right about the number of companies, but the exposure is more limited than it might initially suggest.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

In terms of the industrial strategy, does the Secretary of State think that the chronic M4 congestion around Newport, which snarled up the England rugby team coach last Friday, was part of a cunning plan to give Wales the edge, or just a consequence of 20 years of failure on the part of a Welsh Labour Government, who cannot build a road?

[Alun Cairns]

My right hon. Friend is absolutely right. Even the Welsh coach, Warren Gatland, said to Eddie Jones that he would never have travelled through Newport at that time of day because of the congestion in the area. That might be light-hearted, but the reality is that the problem is causing serious reputational damage to Wales. The plan is available and makes a positive recommendation, and the money is available from the Treasury. I wish that the Welsh Government would just get on and deliver the road.

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[The Prime Minister]

Manufacturing is not in recession, and what the right hon. Gentleman says about the lowest earners is not the case. If he had listened to my earlier answer, he would know the lowest earners have seen the highest rise in their pay for 20 years as a result of the introduction of the national living wage—the national living wage introduced by a Conservative-led Government.

If the right hon. Gentleman is talking about actually helping people who are in work, let us talk about the fact that we have cut income tax to help people to keep more of what they earn. We have frozen fuel duty to help people for whom a car is a necessity, not a luxury. Since 2010, those measures have saved working people £6,500.

From the way the right hon. Gentleman talks, one might think that he would have supported those measures. But what did he do? No, he voted against them over a dozen times. That is the reality: it is working people who always pay the price of Labour.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Q5. For rural areas, access to emergency care is hugely important, with distances and journey times crucial. Does the Prime Minister therefore agree with me and the 40,000 Pembrokeshire people who signed the petition against proposals to remove accident and emergency services from the local hospital that the Welsh Government need to look again and ensure that communities such as mine are not left with second-class services that put lives at risk?

[The Prime Minister]

I thank my right hon. Friend for raising this issue. Obviously I recognise the concern those people feel, particularly those who live furthest away from the planned new hospital. As he says, health is a devolved matter for the Labour Welsh Government, but I urge them to consider fully the impact of the changes on local residents. We want to ensure that people can access the services they need, wherever they live in the United Kingdom.

Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 23rd January 2019 Commons Chamber

[Alun Cairns]

The hon. Gentleman makes an important point about the port of Holyhead. It is the second busiest port in the UK during the summer months, but of course all year round it is pretty critical to the supply chain, particularly for foodstuffs that come from both Northern Ireland and the Republic of Ireland. A ports working group has been in place for quite some time—it involves the UK Government, the Welsh Government and the relevant UK Government agencies—to plan for a deal, and also to plan for no deal, as a responsible Government would do.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Does my right hon. Friend agree that voters in Wales will not forgive this place if we fail to respect the outcome of the 2016 referendum, and that businesses in Wales will not forgive us if we create a set of circumstances that makes their job of creating jobs in Wales even harder? Given those two imperatives, does my right hon. Friend agree that actually passing a withdrawal agreement—passing a deal—is absolutely essential now?

Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 6th September 2017 Commons Chamber

[Alun Cairns]

I am grateful to the hon. Lady for the question. Yes, I have discussed with Cabinet colleagues the need for investment in new stations in Wales. There is the prospect of new stations, and there is the prospect of further investment. I have met Cardiff Council to talk about that. I have spoken about it to the Welsh Government. I am keen to explore the opportunities that exist there, and also the opportunity to attract private investment, so I have also spoken to the private developer around that site.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Returning to the subject of electrification, it is true that the bi-mode trains are good, but they are a second-best solution. However, looking to the future and further rail infrastructure investment in Wales, does my right hon. Friend agree that there are major questions to be asked about Network Rail’s ability to deliver projects on time and control its costs? What more can be done to create a more competitive and cost-effective environment for rail infrastructure investment in Wales?

[Alun Cairns]

My right hon. Friend makes an important point about the efficiency of Network Rail. Earlier this year, the Public Accounts Committee called on the Government to reassess the case for electrification on a section-by-section basis, partly as a result of the increased costs that have been delivered by Network Rail. However, to improve rail access to west Wales—to Pembrokeshire, Carmarthenshire and other places—we have the opportunity to explore opportunities for new stations, which could well deliver bimodal trains on a regular basis to parts of Wales that do not access fast trains at the moment.

Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 8th March 2017 Commons Chamber

[Mr Speaker]

Order. An excessive number of rather noisy private conversations are taking place. I understand the sense of anticipation, but it is very unfair on Members asking questions and the Minister answering. Let us have a decent audience for Mr Stephen Crabb.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Despite Wales having world-leading companies that contribute to humanitarian efforts in some of the poorest nations on earth, no Welsh company has been able to secure a contract with the Department for International Development. Will my right hon. Friend look into that and work with the excellent International Development Secretary to make DFID not only more pro-business, but more pro-Welsh business?

[Alun Cairns]

My right hon. Friend raises an extremely important point. Not only has he been a strong champion for Wales over many years, but he has shown a strong interest in overseas development. I will happily work with him and my right hon. Friend the International Development Secretary on overseas aid to ensure that Welsh businesses get the same opportunity as any other UK business to win contracts to help to support and develop those nations.

Welsh Affairs

Stephen Crabb Excerpts

Thursday 2nd March 2017 Commons Chamber

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

Members will be aware of the plan by the Heads of the Valleys Development Company, led by Mr Michael Carrick, to build a racetrack at Ebbw Vale. Mr Carrick persuaded the Welsh Government to put £9 million into his company, Heads of the Valleys, in order to develop this, but has so far been unable to get the private sector to back the scheme without an assurance from the Welsh Government that they will provide over £200 million as a loan guarantee.

Mr Carrick claims to be an expert in building infrastructure. He has been involved in attempts to set up infrastructure projects in the Shetland islands and the Port of Ardersier in Scotland, as well two biomass projects in Africa and another in Ireland, and a river barrage scheme at Fleetwood. None of these projects has been successful. I have spoken to many involved who say that they feel let down and misled, and in more than one case that they are owed money. I could give some examples, but do not have the time. One that has been in the press, however, involved Mr Bob Long from Fleetwood, who tried to set up a river barrage. Mr Carrick told him that he had the funds available to develop the project, but the money never arrived, and Mr Long claims the project has been almost ruined as a result.

Aventa’s website, which Members can look at if they wish to, implies that it is responsible for managing a fund worth £350 million to build UK infrastructure, but Companies House records suggest that it has just £500 in the bank. However, with his £9 million of public money, Mr Carrick decided to buy a specialist motorcycle company based in Buckinghamshire. It was shown in the records as a dormant company until August 2012, after which it sprang into life. By August 2013, it was showing liabilities of £350,000. The losses grew, but when I met Mr Carrick in July last year, he told me that he would soon turn it around, that it would be an anchor business for his site and that it would lead to a Welsh rider winning a Welsh grand prix. A few months later, it was in administration, owing more than £500,000. If Mr Carrick cannot make a success of a small company turning over a few hundred thousand pounds, should the taxpayer be backing him in a venture worth several hundred million?

Mr Carrick’s publicly funded company has also bought the rights to hold the MotoGP championships at Silverstone, but so far he has made a loss on that of around £1 million. Many companies, including some local ones, have done work for the project but have not been paid—they have all done it at risk—but luckily, one supplier has been paid in full, again out of public funds. Mr Carrick decided to appoint a financial consultant to give advice to the scheme, and the company he appointed was Aventa, a company that he 100% owns and controls. In effect, he paid himself nearly £l million of public money to give himself advice. Civil servants in the Welsh Assembly raised concerns about this but were overruled. I have some written material to back all this up, by the way; I have the invoices. Among other things, Aventa spent £35,000 on landscape gardening. Those invoices were made out to the Heads of the Valleys Development Company, but Mr Carrick says that they were paid by Aventa. He also spent thousands of pounds on political events for the Labour party and, he tells me, for the Conservative party, although I do not have those invoices.

When I raised my concerns with Mr Carrick, he told me that he was entitled to spend Aventa money as he pleased and that it had sources of income other than the public money from the Heads of the Valleys Development Company. I asked for examples and he cited GE. I asked him whether he meant General Electric, and he said yes. I then contacted General Electric, which told me that he had asked for money but had not had any from the company. At the same meeting, one of Mr Carrick’s associates told me that BMW was planning to build a BMW world theme park at the site. I checked with BMW, which told me that that was absolutely ludicrous and that it had no plans to do so. Again, I have all this in writing.

Mr Carrick’s lawyers, who are in touch with me frequently, claimed that I had made all this up, but, fortunately for all concerned, I have a high-quality recording of the meeting, and they have now had to accept that all those comments were indeed made. I can share the transcript of the meeting with anyone who is interested, although I cannot share the recording without Mr Carrick’s permission, which he does not seem very willing to give. I asked him about the business plan, and I was told that he would be able to rent out the race track for between £18,000 and £35,000 a day. Industry experts tell me that that is absolutely ludicrous. But even if he did manage to do that, he would be pulling in revenue of only about £13 million a year on a project that is going to cost £430 million to build. I am intrigued as to why the project keeps increasing in cost, from £200 million in 2011 to £250 million in 2012 and to £380 million when I met Mr Carrick in July. Seven months later, it has risen again to £430 million.

I have two other documents of interest. The first is a quote from a construction company, FC, for £180 million for building the track—a project we are told is worth £430 million. Even with a few hotels chucked in, that would take a bit of explaining. The second is a business plan showing a developer’s profit of £13 million.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

I commend my hon. Friend for his investigation into this episode. What broader lessons does he think should be drawn from this about Welsh Government Ministers’ attitudes towards the use of public money in the name of economic development?

[David T. C. Davies]

The first lesson is that nobody should be able to make £13 million on a project before it has even been built. Secondly, this whole thing is an outrage. People are being sold a pipe dream. Politicians who support it are being taken out for lunch, and those who ask difficult questions are being threatened with legal action by a group of expensive City lawyers. Some £9 million of taxpayers’ money has been wasted. The only infrastructure we have seen so far has been the £35,000-worth of work done to Mr Carrick’s mansion in Grantchester, and the only sports car in evidence is the Aston Martin that he drives around in. It is time to pull this project.

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[Nick Thomas-Symonds (Torfaen) (Lab)]

It is always a pleasure to follow my neighbour the hon. Member for Monmouth (David T. C. Davies). I hope that he and I will agree on the principle of the importance of investing and creating jobs in the heads of the valleys.

Economic development will be the focus of my remarks, and we have seen good news in recent days. Yesterday, on St David’s day, the Cardiff capital region city deal was signed, which is clearly good news for south-east Wales. However, there are also concerns about Ford workers in Bridgend, which underlines—if there is any need to—the need for a coherent strategy from the UK Government for the years ahead. Whether people voted leave or remain in last year’s referendum, nobody voted to become poorer. We must ensure that structural funding continues beyond 2020. Foreign direct investment, which was at a 30-year high last year, must continue, and the Welsh Government deserve great credit for continuing to attract such investment to Wales. Steel, which is a foundation industry, must also be central to Wales’s economic future.

The priorities are both immediate and long term. Immediately, we must secure tariff-free access to the single market. Indeed, the Welsh Government’s “Securing Wales’ Future” document, which was produced together with Plaid Cymru, sets out the importance of participation in the single market, and a balanced migration policy, given that over two thirds of Welsh exports go there.

In the longer term, we need a vision of what a post-Brexit Wales should look like. The European Union currently has more than 50 free trade arrangements, which will clearly need replacing. The Brexit White Paper produced by the UK Government contains a chapter on “Securing new trade agreements with other countries”. It has 19 paragraphs, but there is no mention whatsoever of Wales’s position or the Welsh perspective on such trade agreements. However, that same document sets out that some of the fastest growing export markets between 2005 and 2014 were places such as China, South Korea, Brazil, and Mexico. The UK Government must work with the Welsh Government, which already have 14 overseas offices ready to assist with the creation of new trade agreements.

[Stephen Crabb]

My ears pricked up when the hon. Gentleman mentioned that the Welsh Government currently fund 14 overseas offices to assist with international trade. Given the extensive global network of embassies and high commissions that the UK Government fund from Westminster precisely to assist with international development, why should taxpayers fund these duplicate offices?

[Nick Thomas-Symonds]

In a sense, the right hon. Gentleman makes my point for me: we need a Welsh perspective in the construction of post-Brexit trade deals.

In the teeth of opposition from Conservative Assembly Members, it was very important that the Welsh Government nationalised Cardiff airport, which is crucial to Wales’ economic future.

The constitutional arrangements of Wales in 2017 are different from those that existed in 1972 when Wales entered the then European Economic Community. When the rules currently set in Brussels on matters such as agriculture, the environment or certain parts of transport are repatriated to the United Kingdom, we must ensure that they are not exclusively returned to this Parliament when it would be more appropriate to base them with the Welsh Government in Cardiff. It is vital to bear that in mind in the debates to come.

There is a broader point, and my hon. Friend the Member for Ynys Môn (Albert Owen), whom I congratulate on leading the campaign to secure this debate, put it well when he talked about working now for the 100%. What is in the best interest of the people? Of course it is vital that we retain workers’ rights, environmental protections and consumer protections as we move into a post-Brexit Wales, but let us have the ambition not only to retain those rights and protections but to build on them—to make our consumers better protected, to strengthen environmental protections and to build on the workers’ rights that our membership of the European Union established and deepened over the years.

Our focus on Wales’ economic wellbeing is vital. It is about ensuring that the voice of Wales is heard loud and clear in the negotiations ahead so that we are able to produce the prosperous post-Brexit Wales that we all want.

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[Chris Davies]

I strongly agree with my hon. Friend. When one stands on the beautiful Pen y Fan in the mountains of the Brecon Beacons, we look down on south Wales to the Gower, and what a pleasure it is to see it from a distance—or, in fact, from near or far.

The Welsh tourism industry provides excellent employment prospects in my constituency and is a great boost to the local economy, but it is under some threat at the moment. Business rate hikes, should they go ahead as planned, will harm the tourism industry’s small profit margins, and a number of owners have expressed concerns to me that they might have to close altogether as a result. I therefore very much look forward to hearing any measures that the Chancellor can put in place next week for England that can be replicated in Wales.

It is not just the tourist in St David who is well suited to my speech. As many hon. Members will know, St David set up a number of monasteries around Wales. They were very frugal in their operations; once set up, they farmed the land. Thankfully, farming practices have remained, and produce from Wales is now widely recognised as among the finest products available in the world. Welsh lamb is becoming a benchmark for quality, and our beef is second to none. I am therefore pleased that the Government are supporting Welsh farmers by protecting farm payments until 2020. Furthermore, with Brexit, we have the opportunity to free our Welsh farmers from the shackles of the EU so that we can better compete with produce from around the world.

St David was not just a tourist and a farmer; he was also an inspiration to the warriors of Wales—he was recognised as our patron saint at the height of the Welsh rebellion against the Normans. Support for our military is still very visible in Wales. For many years, we have had a vast number of training grounds and barracks for our military right across our nation, and our communities take great pride in welcoming servicemen and women to their towns. I know that from the infantry training camps in Sennybridge and the Brecon Beacons, and from the barracks in Brecon, in my constituency, which once housed soldiers who fought in the battle of Rorke’s Drift, which was made famous by the film “Zulu”. That history of community is very important to local people, so I am disappointed that the Government seek to close the Brecon barracks. I hope that they will reconsider that proposal, see how important the barracks is to the military and the wider community, and keep it open for generations to come.

Following my research, I felt that I could not speak in this debate without mentioning St David’s great miracle. As he was preaching to the crowd at the synod of Brefi, he raised the ground beneath him into a hill that his sermon could be heard from. There are times when I wish for just such a power, because of my height—so does the Secretary of State, I am sure. None the less, I was reminded of the beautiful, rolling countryside of Brecon and Radnorshire.

[Stephen Crabb]

I am enjoying my hon. Friend’s speech enormously, but I fear that he has made a slight omission. He has not yet referred to the fact that St David was, of course, from Pembrokeshire, the most beautiful part of our fabulous nation of Wales.

[Chris Davies]

Just as when my right hon. Friend was Secretary of State for Wales, we are delighted to see Pembrokeshire people ruling over us, but we are also delighted to see them go back to Pembrokeshire on occasions, too—[Interruption] Even though he remains a great right hon. Friend.

My right hon. Friend stopped me as I was just about to mention that great institution that we call the Labour-run Welsh Assembly, which is proposing to litter not just Brecon and Radnorshire, but the whole of mid-Wales, with wind and solar farms by imposing measures on Powys County Council’s local development plan. Such a proposal would harm not only the excellent tourism industry that I mentioned earlier, but the attractiveness of mid-Wales for locals and those thinking of relocating there. It looks as if we will need one of those great St David’s miracles to prevent these plans from going through, but I can assure Members that I shall be fighting them all the way.

May I say again what a pleasure it is to see this House focusing on Wales issues?

Wales Bill

Stephen Crabb Excerpts

Ping Pong: House of Commons
Tuesday 24th January 2017 Commons Chamber

[Alun Cairns]

I am grateful to the hon. Lady for her intervention, and for the scrutiny and interest she has rightly given the Bill, but I hope she recognises the significance of the fiscal framework. The needs-based factor to which she refers is 115%, and the current level is well above that. It will fall to 115% over time, recognising the fair settlement that Wales gets because of its needs. It is significant that that needs-based factor is being introduced into the Wales settlement for the first time. It is something for which the hon. Lady and her party have been calling for some time, but it took a Conservative Government to deliver it.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

My right hon. Friend has done a fantastic job of steering the Bill through its Commons stages. The hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) says that the figures are out of date, but when I sat down with Professor Holtham to think about how to scope out a fair funding floor for Wales, he was absolutely clear that there was no reason to think that just because of the passage of time the figures that he had in mind were somehow incorrect. The level that has been set by the Treasury is exactly right for Wales’s needs at this time.

[Alun Cairns]

My right hon. Friend played an important role in ensuring that we have the needs-based factor by framing the debate in such a way as to make possible a successful conclusion. Ultimately, the Welsh Government would understandably have rejected the Bill unless it was associated with an appropriate and fair funding settlement. I hope that Opposition Members will recognise the significance of the settlement, because it really does matter to the long-term funding of public services in Wales.

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This Bill will give the Welsh Assembly greater dignity and status as a real Parliament. From that point of view, we welcome it, but what we have seen today in this Chamber is that grudged nature of devolution. Today’s Supreme Court decision is saying that this Parliament will rule on powers that have already been devolved to Wales, Northern Ireland and Scotland. It should have no right to do that. It is reversing devolution in today’s judgment. Unfortunately, this sad Bill will not take account of Brexit or today’s decision by the Supreme Court.

[Stephen Crabb]

I had not planned to say much this afternoon, but I thought that I would take the opportunity to contribute. First, let me put on the record my thanks to the Secretary of State and congratulate him on the fantastic way he has steered this Bill through its Commons stages and on the way he has handled very sensitive discussions with the Welsh Government, peers and the Opposition parties to bring it to fruition.

I also wish to put on record my thanks to Lord Bourne and to Baroness Randerson, who has not been mentioned this afternoon. Baroness Randerson was a Minister in the Wales Office when I was Secretary of State, and she was a fantastic rock of wisdom and support on matters relating to devolution. The amendments before us really give effect to the fiscal framework agreement, and represent the culmination of all those original aims that we set out for this next stage of devolution.

I remember sitting down with the then Prime Minister David Cameron two and a half years ago in the lead-up to the Scottish referendum—we all felt that it was a moment of unique constitutional history—and saying, “Well, where does this leave Wales? Do we need to do something further on Welsh devolution?” We had already had the Silk reports. To be honest, they were on the shelf. My feeling was that it was not good enough to leave Welsh devolution in limbo. Yes, there was a bit of pressure coming from some of the opposition parties in the Welsh Government to give effect to Silk 2, but there was no overwhelming pressure. Conceivably, we could have resisted that pressure, but I thought that moving on to the next stage of Welsh devolution was the right thing to do.

I am immensely grateful to my right hon. Friend the Secretary of State and to Baroness Randerson who were with me at the time in the Wales Office. We really talked about the matter to see what we should do. Comments have already been made this afternoon about how the Bill has changed, but it has followed an entirely appropriate and correct process, including a draft Bill, a consultation, the taking of advice and guidance, and amendments. The tone throughout has been one of listening. However, the original objectives have not changed. We wanted to create a stronger, clearer devolution settlement for Wales to end the constant arguing that resulted in the UK Government and the Welsh Government trotting off to the Supreme Court to debate which Administration are responsible for which policies—it was absolutely ridiculous. We also want to create a fairer devolution settlement, which is where the financial aspect comes in.

[Mr Mark Williams (Ceredigion) (LD)]

I pay tribute to the right hon. Gentleman for what he has done. My colleague Jenny Randerson greatly enjoyed working with him. He has pushed this agenda forward. One test that he employed at the time was to see whether the settlement would stand the test of time and whether a chapter would be closed—would Wales get used to its new constitutional settlement and would we not have to return to devolution in future? Has that test been met?

[Stephen Crabb]

To be absolutely honest, I do not think that this represents the end of the book on Welsh devolution, but we need a prolonged period in which the Welsh Government learn to deploy their powers and use their competencies in a way that benefits the people of Wales. We were talking about the M4 upgrade earlier; an early deal that I did when I was Secretary of State for Wales involved making new money available to the Welsh Government to crack on with it. The project had been talked about for years. I remember taking a question on it during Welsh questions and William Hague leant across to me and said that people were talking about it 20 years ago when he was Secretary of State for Wales. We are still waiting for any substantial action despite the money being available. That is the challenge that risks corroding public support for devolution in Wales—the sense that the Welsh Government, despite their additional powers, seem unable to crack on and take big, bold decisions to improve the lives of people in Wales.

Returning to my previous point, the Bill meets the core objectives that we set out. The reserved powers model and additional powers for the Assembly and for the Welsh Government create a stronger devolution framework. Amendment 9 will create a clearer and fairer settlement as a result of the fiscal framework and the funding floor for the Welsh Government’s new borrowing powers. I remember being told two and a half years ago that the four things that we wanted to achieve had no chance of success. I was told that the Treasury would not agree to them, that the Welsh Government would not agree to take tax-raising powers—income tax powers—and that my own Back Benchers would not agree. However, all the parties worked together to sketch things out while respecting each other’s’ differences. Plaid Cymru has long-standing aspirations and ambitions for Welsh devolution that, frankly, no Wales Bill has met, but the tone was constructive and that has laid a good foundation and has provided smooth passage for a reasonably good Bill. It is not the end of the story, but I hope that it is the end of an interesting chapter for Welsh devolution.

[Liz Saville Roberts]

I am sure that the House will join me in wishing the best to my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards), who is expecting the imminent arrival of the latest member of his family. [Hon. Members: “Hear, hear.”] I sympathise with all MPs who have to balance family life and parliamentary duty.

I, of course, welcome to an extent the fact that a fiscal framework is on the verge of being in place, giving the Welsh Government a degree of financial accountability that is intrinsic for any functioning democratic Parliament. Judgment is still very much out, however, on whether it can really deliver the economic accountability and levers for growth that are required in this tumultuous time. I therefore want to start with a few brief comments about the framework’s ambition, or lack thereof. I then want to ask the Minister a specific question about how the framework will operate before finally discussing the capital expenditure limit outlined in amendment 9.

Despite finally having this fiscal framework in place, we still lag behind every other devolved Administration in terms of powers and responsibilities. Earlier today—like most days—we were embroiled in the Brexit conundrum and all its unravelling economic implications, but the Government’s insistence on a patchwork approach to devolution means that Wales will not have the real levers for growth that it needs at this most difficult of economic times. If the Conservative party wants to talk about the real opportunities that a single market and customs union exit brings for Wales, it should be looking at the fiscal levers for growth, including VAT, the most important tax for Wales, and how it could be devolved. I hope the Minister will indicate that he plans to review the framework in the light of recent developments to ensure that Wales has such fiscal levers.

I briefly want to touch on a technical point that my party colleague, Adam Price AM, has already raised with the Welsh Government’s Cabinet Finance Secretary. The much trumpeted relative need provision of the fiscal framework—the 115% rule, which is referred to as the Holtham floor—was based on a set of criteria that determined Wales’s relative need in 2009-10. There seem to be no plans to conduct a review of that relative need when the floor is set to be implemented approximately three years from now, meaning that those relative needs will be based on figures that are 10 years out of date. This was discussed briefly in earlier interventions, but the 115% rule surely cannot be set in stone for all time, so I ask the Minister to propose a review to investigate that.

Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 30th November 2016 Commons Chamber

[Alun Cairns]

I am grateful to my hon. Friend for his kind comments, but of course we have a close and constructive working relationship with the Welsh Government and all devolved Administrations because it is in our interests to get the strongest deal for the whole of the UK. After all, as my hon. Friend will recognise, the most important market for Welsh business is the UK market, and getting the best deal for the whole of the UK is in all our interests.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The automotive and aerospace sectors are of enormous strategic importance for the Welsh economy. Given that Brexit probably will not mean retaining full membership of the single market, will my right hon. Friend nevertheless commit to do everything he can to retain full single market-style benefits for those critically important sectors in the Welsh economy?

[Alun Cairns]

My right hon. Friend raises an important point. He recognises the strength of the automotive and aerospace sectors, and I would point to some significant major investments the UK has landed. We are all familiar with Nissan investment in Sunderland, but it is equally important to the Welsh economy—Calsonic Kansei in Llanelli is a supplier to Nissan in Sunderland. We want to maintain the most open market arrangements, and the confidence shown by Nissan demonstrates it understands the priority we are placing on that.

Macur Review

Stephen Crabb Excerpts

Thursday 17th March 2016 Commons Chamber

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

With permission, Mr Speaker, I will make a statement on the publication of the report of the Macur review.

On 5 November 2012, the Prime Minister announced the establishment of an independent review of the scope and conduct of Sir Ronald Waterhouse’s inquiry into allegations of child abuse in care homes in Clwyd and Gwynedd between 1974 and 1990. Let us be clear: we are talking about dark and shameful events that are a stain on our nation. The children were in the care of the state because they were vulnerable, and the state let them down. That is why our first thought will always be with the victims, supporting them and bringing the perpetrators to justice.

The Prime Minister’s announcement of a review of Waterhouse followed significant public concern that its terms of reference were too narrow, and that allegations of child abuse were not properly investigated by Waterhouse, particularly where those allegations concerned prominent individuals. The Waterhouse inquiry was established in 1996 by the then Secretary of State for Wales, now Lord Hague of Richmond, following allegations of endemic child abuse at care homes in Clwyd and Gwynedd. Waterhouse’s final report, “Lost in Care”, published in 2000, concluded:

“Widespread sexual abuse of boys occurred in children’s residential establishments in Clwyd between 1974 and 1990”,

and that there was a paedophile ring operating in the north Wales and Chester areas, but no reference was made to any abuse being carried out by nationally prominent individuals.

On 8 November 2012, the then Secretary of State for Justice, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), and my predecessor, my right hon. Friend the Member for Clwyd West (Mr Jones), announced that the review would be headed by Mrs Justice Macur DBE, a High Court judge of the family division. Her terms of reference were to review the scope of Waterhouse; determine whether any specific allegations of child abuse falling within the Waterhouse’s terms of reference were not investigated; and to make recommendations to the Secretaries of State for Justice and for Wales.

Lady Justice Macur submitted her report to the Secretary of State for Justice and me on 10 December 2015. I pay tribute to her and her team for their work and for their thoroughness and diligence in carrying it out, particularly in the light of the huge amount of material that needed to be considered. She and her team have examined the 1 million-plus pages of documents relating to Waterhouse provided to her from many sources. She has conducted interviews with individuals closely involved with the work of Waterhouse; with those who provided written submissions to Waterhouse; with those involved in police investigations; and with those who worked on the prosecution files of those accused of abuse of children in care in north Wales. She published an issues paper, in English and in Welsh, with suggestions of broad areas of interest, to prompt written submissions from those affected. She also arranged a public meeting in Wrexham specifically to engage those in the local area.

Having completed that work, Lady Justice Macur’s main finding is as follows:

“I have found no reason to undermine the conclusions of”

Waterhouse

“in respect of the nature and the scale of abuse.”

Lady Justice Macur looked carefully at the specific issue of nationally prominent figures and concluded that there was no

“evidence of the involvement of nationally prominent individuals in the abuse of children in care in North Wales between 1974 and 1996”.

While the Government welcome that finding, the context in which it is made must never be forgotten.

In addressing concerns about the time taken by the former Welsh Office to set up the Waterhouse inquiry in the mid-1990s, Lady Justice Macur does recognise that there was some reluctance in that Department to undertake a public inquiry. However, she concludes that any reluctance to undertake a public inquiry was

“not with a view to protect politicians or other establishment figures”

and that

“the government was right to consider the different options since a public inquiry...was correctly understood to be a major undertaking”.

Lady Justice Macur is also clear that waiting until Crown Prosecution Service investigations had been completed was the correct decision, as

“the government would be justifiably subject to criticism in creating any situation that compromised ongoing criminal investigation or prospective trials of accused abusers”.

Lady Justice Macur makes it clear that she is satisfied that Waterhouse’s terms of reference were not framed to conceal the identity of any establishment figure, nor have they been interpreted by the tribunal with a design to do so. She has also found that, despite the Welsh Office being both the commissioning Department and a party to Waterhouse, there was ample independence of Waterhouse from the Welsh Office.

Freemasonry has been a persistent theme of concern in relation to the events in north Wales and is referenced extensively in Waterhouse. I am grateful to Lady Justice Macur for her thorough explorations of this issue, but she is satisfied that

"the impact of freemasonry on the issues concerning the Tribunal was soundly researched and appropriately presented and pursued”

and that

“there is nothing to call into question the adequacy of the Tribunal’s investigations into the issue of freemasonry at any stage of the process”.

As I mentioned earlier, Lady Justice Macur states:

“I make clear that I have seen NO evidence of child abuse by politicians or national establishment figures in the documents which were available to the Tribunal, save that which could be classed as unreliable speculation.”

On the direct evidence before them, she also found that it was

“not unreasonable for the Tribunal to conclude that there was no evidence of a further paedophile ring in existence"

outside of that described by Waterhouse.

In addition to her main finding that she has no reason to undermine Waterhouse’s conclusions, Lady Justice Macur makes a total of six recommendations. Her first relates to ensuring that any public inquiry, investigation or review can be objectively viewed as beyond reproach. The Government agree. We have already been clear that, during the establishment of the independent inquiry into child sexual abuse in 2014, we did not get it right in initially appointing two chairs who had failed to win the trust of survivors. This is a principle that should be rigorously observed in the establishment of inquiries, investigations or reviews.

Lady Justice Macur’s second recommendation is that the preservation and correct archiving of material of an important public inquiry or review is essential. This links to her third recommendation that all Government Departments should possess an accurate database of the documents and materials held by them. Again, we agree with both those recommendations.

When the Welsh Office, which established Waterhouse, was disbanded in 1999, the files it held on newly devolved issues such as social care and children’s services were transferred to the National Assembly for Wales. This included the Waterhouse computer database. When Lady Justice Macur requested this, it was found that in 2008 Welsh Government IT contractors had declared that its contents were “corrupted and unreadable” and they had therefore been destroyed. She finds that it was an

“innocent mistake, rather than a calculated ploy”.

Files relating to Waterhouse will not be returned to the Wales Office; given their historical importance, they have been transferred to the Welsh Government for onward transmission to the National Archives.

The Government accept the criticisms made by Lady Justice Macur of the way documents were stored. Similar criticisms were made of the Home Office in the first Wanless and Whittam inquiry in 2014. Following the recommendations made by Wanless and Whittam on the management of files containing records of child sexual abuse, the Cabinet Secretary asked all permanent secretaries to consider how their Departments can learn lessons from the review and put in place appropriate safeguards. Likewise, following the establishment of the Goddard inquiry, the Cabinet Office announced a moratorium on the destruction of information, and put in place processes for the storage of such material. The failure of the new Wales Office in 1999, under a previous Government, to adequately archive the material is simply inexcusable, but a much more rigorous approach to records management is now in place in the Department, abiding by National Archives policy on records management.

Lady Justice Macur’s fourth recommendation is that due criminal process is better suited to the disposal of any unresolved complaints and allegations that were not investigated during the course of Waterhouse, rather than a public or a private inquiry. The Government agree, and welcome particularly the work of Operation Pallial in this area.

Lady Justice Macur’s fifth recommendation relates to consideration of criminal charges relating to events referenced in paragraphs 6.45 to 6.75. For the sake of clarity, let me say that this does not relate to the actions of the Welsh Office or any other Government Department. The police and the Crown Prosecution Service are aware of the specifics of this matter and it is for them to consider further.

The final recommendation relates to the process of establishing a review of previous tribunals or boards of inquiry. Lady Justice Macur notes that

“the conclusions of any such body will not meet with universal approval, and that those with an interest, personal or otherwise, will seek justification for their views and be unlikely to accept the contrary”.

The Government note this and understand that it is inevitable that some people will remain dissatisfied, despite the comprehensive work undertaken by the Waterhouse inquiry and now by Lady Justice Macur.

Hon. Members who have long campaigned on this issue have said that the report should have been published without delay. I absolutely share the same instinct for openness and full transparency. However, Lady Justice Macur has acknowledged that her final report contains information, including the names of some individuals, that it would not be possible to publish. In particular, she notes that certain parts of her report ought to be redacted, pending the outcome of ongoing legal proceedings or police investigations. We have worked closely with the Director of Public Prosecutions and the police—specifically representatives of Operations Pallial, Hydrant and Orarian—to ensure that no investigations or trials will be prejudiced by the release of this report. The names of those found guilty of crimes of child sexual abuse in a court of law have of course not been removed.

The names of contributors to the review and Waterhouse have not generally been redacted, but Lady Justice Macur also cautioned that, under the Sexual Offences (Amendment) Act 1992, victims of alleged sexual offences are entitled to lifelong anonymity. As such, these names, along with names of individual members of the Crown Prosecution Service and police informants, have been considered carefully by Sue Gray, director general of propriety and ethics in the Cabinet Office. We have accepted her advice in full, and a small number of redactions have been made in those categories. The full details of the process by which redactions in these areas were made is set out in a letter from Sue Gray that I am today publishing alongside the redacted report.

Lady Justice Macur urged caution in relation to releasing the names of individuals accused of abuse, or speculated to be involved in abuse, who have not been subject to a police investigation, have not been convicted of a criminal offence, and/or whose names are not in the public domain in the context of child abuse, whether establishment figures or not. She argued that to do so would be

“unfair in two respects and unwise in a third:…first, the nature of the information against them sometimes derives from multiple hearsay;…second, these individuals will have no proper opportunity to address the unattributed and, sometimes, unspecified allegations of disreputable conduct made against them;…and third, police investigations may be compromised”.

We have followed that advice and removed those names from the report published today. It is a fundamental tenet of the law in this country that those accused of a crime are able to face their accusers in court, with a jury of their peers to consider the evidence, and not tried in the court of public opinion as a result of “multiple hearsay”. It would be irresponsible for the Government to behave differently. To provide total clarity on the process by which this group of names was redacted, I am also today publishing a letter from Jonathan Jones, Treasury solicitor and head of the Government Legal Department, setting this out.

I should also like to stress that a full and unredacted version of the report has been provided to the wider independent inquiry into child sexual abuse, chaired by Justice Lowell Goddard, to aid its investigations. It has also been seen by the Director of Public Prosecutions, the CPS and representatives of Operations Pallial, Orarian and Hydrant.

As a Government, we are determined to see those guilty of crimes against children in north Wales brought to justice, and this is happening through the excellent work of Operation Pallial. In November 2012, the chief constable of North Wales police asked Keith Bristow, director general of the National Crime Agency, to lead Operation Pallial, which would look into specific recent allegations of historical abuse in the care system in north Wales. A total of seven men have been convicted of one or more offences following investigations by Operation Pallial, and a further eight have been acquitted after a jury trial. That includes John Allen, who ran Bryn Alyn Community, who was sentenced to life imprisonment in December 2014 after a jury found him guilty of 33 charges of serious sexual abuse. Five members of a predatory paedophile group received a total of 43 years in jail in September 2015, having been found guilty of a total of 34 offences of abuse.

Operation Pallial has now been contacted by 334 people, who have had the trust and confidence to come forward to report abuse. A total of 102 complaints are actively being investigated at this very moment. A total of 51 men and women have been arrested or interviewed under caution, and work to locate further suspects is continuing. A total of 16 people have been charged or summonsed to court as a result of Operation Pallial so far. Charging advice is awaited in relation to a further 26 suspects.

A total of 32 suspects are believed to be dead, and work is ongoing to confirm this. An independent review of evidence against 25 of these deceased suspects has indicated that there would have been sufficient evidence to make a case to the CPS for them to be charged with various offences. Those who made complaints in such cases have been updated personally by the Pallial team. A further two trials have been set for 2016, with further trials expected.

In closing, I would once again like to thank Lady Justice Macur and her team for their diligent and exhaustive work in providing this report. I would like to pay tribute to the courage of those victims for coming forward and reliving the horrible detail of their experiences to ensure that the truth can be established once and for all. I would like to pay tribute to the police, the Crown Prosecution Service and the Director of Public Prosecutions for their collective work to ensure that those who were involved in the abuse of children in north Wales, who perhaps thought that the mists of time had hidden their crimes for ever, are now being made to pay for what they did. I commend this statement to the House.

[Nia Griffith (Llanelli) (Lab)]

I thank the Secretary of State for his statement and for advance sight of it.

The horrific abuse that was carried out at care homes in north Wales has shocked us all and our thoughts today must be with the survivors. Not only did they endure violence from those who were meant to protect them, but they have had to wait years—decades—to be heard.

I would like to pay tribute to my right hon. Friend the Member for Cynon Valley (Ann Clwyd) who has campaigned tirelessly for the survivors ever since these allegations came to light. As she has highlighted before, some of those who were abused at Bryn Estyn and other homes have since taken their own lives. It is therefore right that we think of their families today and of everyone affected by this scandal.

The extent of the abuse revealed by the Waterhouse inquiry was staggering. It found evidence of “widespread and persistent” physical and sexual abuse, including multiple rapes carried out against young boys and girls. This abuse was allowed to take place over many years, sometimes decades, in the very homes where vulnerable children should have felt safe. The scale of the abuse is shocking, but what is also shocking is that many of the inquiries into this abuse have encountered a reluctance to co-operate with them, and a refusal to publish their conclusions—in short, cover-ups and missed opportunities.

As the Secretary of State has indicated, the Macur review was

“set up to examine whether any specific allegations of child abuse falling within the terms of reference of the Waterhouse Inquiry were not investigated.”

On behalf of the Opposition, I would like to extend our thanks to Lady Justice Macur and her review team for the work that they have undertaken. In the light of what has happened to previous reports and the overwhelming need for transparency, I welcome the fact that the Macur review has now been published.

There may be cases where redactions are needed, not least to ensure that no ongoing police investigation is compromised, but these redactions must be as few as possible and they must be justified to the survivors. Can the Secretary of State confirm that this review, along with the many other reports on and inquiries into abuse in north Wales, will be made available in full to the Independent Inquiry into Child Sexual Abuse, and that this inquiry will be able to see full, unredacted copies of these reports?

The Waterhouse inquiry found that most children did not feel able to come forward to report what had happened to them. The few who did were discouraged from taking matters further. In fact, were it not for the bravery of whistleblower Alison Taylor, many cases of abuse would not have been uncovered. Although we recognise that processes for safeguarding children have changed radically since many of these cases took place, we must always be ready to learn lessons to ensure that we can protect children better in the future.

Having studied the report, what changes in policy or practice do the Government feel are necessary? What steps will they take to ensure a co-ordinated response to any future cases, wherever they occur—in the public, private or third sector? Does the Secretary of State believe that there is sufficient protection for whistleblowers such as Alison Taylor?

We know that physical and sexual abuse has a lasting impact on the lives of those affected. In recent years, many survivors have felt able to come forward and report the abuse that they experienced. Indeed, we know that a number of people contacted the Children’s Commissioner for Wales following the announcement of the review, and it is possible that others will come forward as a result of the report’s publication. No matter how long ago the abuse took place, survivors need support to rebuild their lives. What support is being given to the survivors of abuse who have come forward, and what conversations has the Secretary of State had with agencies, including the Children’s Commissioner for Wales, to ensure that survivors of abuse know where to turn?

The scale of the abuse that has become apparent in recent years has shocked the whole of society. It is now clear that many thousands of children were targeted by predatory abusers in places where they should have felt safe. Far too many of those children were let down for a second time when they reached out for help, but nothing was done. Our duty is to make sure that survivors of abuse are heard and listened to, that those who report abuse are given sufficient protection, and that anyone who is responsible for acts of violence against children is brought to justice. Above all, we must ensure that this appalling abuse can never be allowed to happen again.

[Stephen Crabb]

I am grateful to the hon. Lady for her response to the statement, and for the spirit and tone in which she made it. I join her in paying tribute to the right hon. Member for Cynon Valley (Ann Clwyd) for her long-standing work in trying to achieve justice not only for her constituents who suffered abuse, but for the wider number of care home residents at the time.

When we discussed this issue during a recent session of Wales Office questions, the right hon. Member for Cynon Valley asked me about the redactions. I gave her a commitment that everything possible would be done to ensure that they were kept to a minimum, and that we would be able to explain the reasons for them fully. As I said in my statement, I believe that the letters that we have published along with the report set out those reasons very clearly, but I suggest that Members read Lady Justice Macur’s remarks in the report urging caution in relation to the publication of the names of individuals in the various categories that she describes. I hope that those explanations will provide ample justification for the redactions.

The hon. Lady asked whether we would make a full, unredacted version of the report available to the independent Goddard inquiry. The answer is yes, absolutely. We have also made a full, unredacted copy available to the Crown Prosecution Service, the Director of Public Prosecutions and Operations Pallial, Hydrant and Orarian.

The hon. Lady asked about changes in policy and practice, and about looking to the future. As I said in my statement, Lady Justice Macur has made a number of specific asks of the Government. She has asked for changes to be made, and made recommendations about, in particular, the way in which material is stored and archived. That is one of the weaknesses that she found in establishing her inquiry after 2012, when it was set up. She referred to the “disarray” that many of the files were in. There are important lessons to be learned by Government as a whole—devolved Administrations and the United Kingdom Government—about the way in which sensitive material is archived and protected for the future. Those lessons have been and are being learnt.

As for the wider issue of how we support the survivors and victims of abuse, I think that there has been an enormous cultural change in the last 30 years in Wales and throughout the United Kingdom. That is one of the reasons why more survivors now feel empowered to come forward as part of Operation Pallial, to relive those horrific events, and to make specific allegations, which are being pursued rigorously by the National Crime Agency.

The really positive developments that have taken place since the 1990s, including the establishment of the Children’s Commissioner for Wales, show that as a society we have made a lot of progress. Of course we do not get everything right, and there is much more that we need to learn to do, but we have made a lot of progress over the past 30 years on the way in which we support victims of sexual abuse and address this issue. I do not wish to sound complacent in any way, however, and indeed there is no sense of complacency in Lady Justice Macur’s report that we are publishing today. I hope that that addresses the hon. Lady’s specific question.

The hon. Lady also asked what support was being provided through the independent Goddard inquiry. The inquiry will shortly open an office in Cardiff to reach out to survivors in Wales, and it will work through the mediums of English and Welsh.

[Mr David Jones (Clwyd West) (Con)]

I thank the Secretary of State for his statement. I also pay tribute to the work done by Lady Justice Macur. I know that it has been a monumental undertaking for her. The events she was investigating have cast a dark cloud over north Wales and the Chester area for many years. I am hopeful that the report published today will ease those concerns, but I have to say to my right hon. Friend that I continue to have my own concerns in two respects. The first relates to the absence of documentation. I fully accept what he has said about its storage, which has frankly been little more than a catalogue of disaster, but will he assure the House that not only his Department and Her Majesty’s Government but the Welsh Assembly Government, who had custody of the documents but lost them, have learned the lessons from this?

My second concern relates to the redactions, which I believe will cause the most concern in north Wales. I fully understand the reasons that my right hon. Friend and Lady Justice Macur have given for this, but can he confirm that Justice Lowell Goddard will have the right to pursue in her own inquiry the identities of those whose names have been redacted in today’s report?

[Stephen Crabb]

I am grateful to my right hon. Friend for his questions. He was one of the joint commissioning Secretaries of State for the foundation of the Macur review. He asked two specific questions. The first was about the absence of the relevant documentation. The conclusion that Lady Justice Macur comes to is that she is confident she has seen enough documentation from the Waterhouse tribunal to make some strong conclusions about the overall findings that Waterhouse reached, and that she supports the overall findings of Waterhouse based on her exhaustive trawl through 1 million-plus pages of documentation. Where there are gaps, she has concluded that they are not sufficient to cast into doubt her overall findings.

My right hon. Friend’s second point related to redactions. Again I make the point that a full unredacted copy has gone to the Goddard inquiry. He asked whether Goddard would be able to pursue those names in the unredacted report. Let us bear it in mind that one of the specific recommendations of the Macur review is that the police and the judicial process will be best placed to go after those people against whom specific allegations have been made, and that public or private inquiries are not the best forum in which to do that.

[Paul Flynn (Newport West) (Lab)]

Page 300 of the Waterhouse report lists the names of 13 young men who could not give evidence to the new review because they had lost their lives. Most of them took their own lives following the case, when they appeared before those who had been accused. They were all used to give evidence in court, some of them because of their police backgrounds. The victims were mercilessly torn to shreds and several of them took their own lives as a direct consequence of the abuse being continued by our court system. That is still continuing today. What this report covers would not have been revealed were it not for the work of my right hon. Friend the Member for Cynon Valley (Ann Clwyd) and Bruce Kennedy and Paddy French, journalists at HTV. It is difficult to judge the report before giving it full consideration, but this is a heart-breaking story of abuse. Those who were responsible were laughing as they went away from court, and the lives of innocents were ended prematurely. We still need to look further into the matter and to consider carefully why some names are still redacted. Is this historical abuse continuing?

[Stephen Crabb]

The hon. Gentleman is exactly right. We are talking about heinous, horrific acts of abuse. We are talking about children who were in the care of the state and got anything but the care of the state. It is a long and tragic sequence of events. Of course, today’s report will not bring full closure to absolutely everybody who lived through those experiences, but Lady Justice Macur has been thorough and diligent in her task of trawling through all the paperwork of the Waterhouse inquiry to try to make sense of whether victims got a fair shout and whether questions about nationally prominent individuals, further paedophile rings, and the role of freemasonry were addressed appropriately. I encourage all hon. Members with an interest in the matter to read the report in full and to reflect on its conclusions.

As for continuing the investigation of those who are guilty, let me be clear that there are people walking around in north Wales and elsewhere in the United Kingdom right now who were there at the time, who participated in and witnessed these acts, and who have gone for years thinking that they are untouchable. I hope that the summary of the achievements of Operation Pallial that I read out earlier demonstrated that such people should be looking over their shoulders.

[Several hon. Members rose—]

[Mark Pritchard (The Wrekin) (Con)]

What happened in north Wales is nothing short of a national scandal for Wales, but will the Secretary of State put on the record his thanks to all those who work day in, day out in childcare, orphanages and other facilities, both in Wales and elsewhere in the United Kingdom, and do so professionally and with care?

I am glad that the Government, the police and the National Crime Agency are taking action. What recent discussions has the Secretary of State had with the NCA about Operation Pallial to ensure that we get more people in court and prosecuted for these heinous crimes?

[Stephen Crabb]

We absolutely put on the record today our thanks for and appreciation of the hard work of those who work in the care sector, supporting vulnerable children wherever they are in the United Kingdom

The National Crime Agency has kept me regularly updated with the progress of Operation Pallial. Just yesterday, I had further discussions with the agency’s deputy director. I am absolutely confident that the NCA is vigorously pursuing all lines of investigation.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Abuse survivors will be dismayed at this morning’s litany of name-concealing and the destruction of evidence. They may rightly feel that their evidence is transient, disposable and not worth safeguarding. How will the Secretary of State work with the Children’s Commissioner for Wales and the Welsh Government to ensure that lessons are learned and that this never happens again?

[Stephen Crabb]

The hon. Lady is right that people will still be feeling like that. All I would say is that they should take the time to go through the report and look at how Lady Justice Macur has handled to the very best of her ability all the sensitive, difficult questions that have plagued survivors for years and years. A lot of lessons have already been learned from the events we are talking about. As I said in answer to a question a few moments ago, that is not to say we are complacent, as there is always more we can learn as a society. But in terms of where we are in Wales right now, we have the Children’s Commissioner and the work that the Welsh Government are doing. There is good collaboration between UK Departments and the Welsh Government on these issues to do with social services, childcare and vulnerable people. The work is positive and will carry on.

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

The people of Wrexham, where many of these horrible events took place, will be astonished by the contents of today’s statement. As a solicitor who practised in the courts around Wrexham in the ‘80s and ‘90s, I am astonished by its contents. I note that the Secretary of State referred only fleetingly to some reluctance in the old Welsh Office to undertake a public inquiry in the 1990s, and I will read the report closely in that respect. Will he please tell me why the prosecutions that are now taking place as a result of Operation Pallial did not take place in 2000, following the Waterhouse inquiry? He did not address that at all in his statement.

[Stephen Crabb]

I thank the hon. Gentleman for his question. He expresses astonishment. What I say in response to that is that if he has specific information about specific individuals, he knows where to go with it—to the police. His question as to why the arrests are being made now and were not being made 30 years ago is a specific question that I have put to the NCA. Its response was that, first, this is because of the publicity of recent years and, secondly, it is because of the culture change, with a lot more witnesses feeling empowered to come forward. That is part of the reason why much greater convictions are being secured; the police are receiving greater, specific evidence from survivors and victims who feel willing to come forward.

[Mark Tami (Alyn and Deeside) (Lab)]

Has the Macur review had unfettered access to those who can explain why the original Waterhouse inquiry did not name the persons of public prominence in its report?

[Stephen Crabb]

Some of the individuals who worked on the Waterhouse tribunal are no longer living, but Lady Justice Macur has pursued, to the very best of her ability, direct conversations with people who worked on the tribunal at the time. As I explained earlier, she has also reached out to survivors. She held that public event in Wrexham to explore this as fully as she possibly could. This was not just her trawling through boxes of documents to explore all these questions. She explains why names should not just be bandied about and she explains clearly why a redaction process is necessary, and I encourage the hon. Gentleman to look through that, along with the letters I am publishing alongside it today, in order to understand this.

[Mr Robin Walker (Worcester) (Con)]

The Secretary of State was right to acknowledge the anguish and suffering that these events have caused and the fact that the police need to continue inquiries in respect of any of the perpetrators. Does he agree that it is vital that victims get support with mental health services and therapy? Will he be making representations to make sure that some of the money the Government are rightly investing in mental health goes to help victims of these types of terrible crimes?

[Stephen Crabb]

My hon. Friend makes an important point about the way we support survivors and victims of abuse, no matter how far back the events occurred. I assure him that for those people who have come forward it is not just a question of our listening and receiving evidence; consideration is given to what further support can be given. Some victims do not feel that they can come forward. Some have moved on and now have families of their own, and for them these are episodes in their past that they are keeping deeply buried. This is obviously a matter of choice for individual survivors.

[Albert Owen (Ynys Môn) (Lab)]

Many of my constituents who have been abused have felt let down because of the long, long delays in this and other reports being produced. They feel that because their abusers have died they will not now get the justice that they deserve. Does the report cover records held by the local authorities in north Wales? I have encountered constituents who have found it difficult to obtain records, particularly those held by Gwynedd authority.

[Stephen Crabb]

Lady Justice Macur’s specific recommendations relate to records that have been kept by national Government. Parts of her report does go, in detail, into how information was handled by local authorities. We are talking about the former local authorities of Clwyd and Gwynedd, which were disbanded and turned into new local authorities. At this point in time, I would just encourage him to read through the report. If he has further questions, he will have an opportunity to explore this further next week in a Westminster Hall debate secured by the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts).

Localism

Stephen Crabb Excerpts

Tuesday 15th March 2016 Written Statements

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

I am pleased to inform the House that the Government have agreed a city deal with local authorities in the Cardiff capital region and the Welsh Government. This agreement is another significant step in the Government’s ambition to rebalance the economy and empower our cities as engines of economic and civic renewal.

The Chancellor opened negotiations with Cardiff a year ago, at the March Budget in 2015. The Cardiff capital region city deal is a transformational opportunity and something that both the UK and Welsh Governments and local authorities alike have worked together to deliver.

The city deal includes:

£1.2 billion investment in the Cardiff capital region’s infrastructure through a 20-year investment fund. A key priority for investment will be the delivery of the south-east Wales metro, including the valley lines electrification programme.

The creation of a non-statutory regional transport authority to co-ordinate transport planning and investment, in partnership with the Welsh Government.

The development of capabilities in compound semiconductor applications. The UK Government will invest £50 million to establish a new catapult centre in Wales. The CCR will also prioritise investment in research and development, and provide support for high-value, innovative businesses.

The Cardiff capital region skills and employment board will be created—building on existing arrangements—to ensure skills and employment provision is responsive to the needs of local businesses and communities. The CCR and the Welsh Government will work with Department of Work and Pensions to co-design the future employment support from 2017 for people with a health condition or disability and/or long-term unemployed.

The Welsh Government and the Cardiff capital region commit to a new partnership approach to housing development and regeneration. This will ensure the delivery of sustainable communities, through the use and reuse of property and sites.

Both the UK and Welsh Government are contributing £500 million to the CCR investment fund respectively. The 10 local authorities in the Cardiff capital region will contribute a minimum of £120 million over the 20-year period of the fund. In addition, over £100 million from the European regional development fund has been committed to delivering the city deal.

Over its lifetime, local partners expect the city deal to deliver up to 25,000 new jobs and leverage an additional £4 billion of private sector investment.

The city deal will develop stronger and more effective leadership and governance across the region through a Cardiff capital region cabinet, enabling the 10 local authority leaders to join up decision-making, pool resources, and work closely with business.

The Government welcome and support co-operation between businesses and local government. As part of the city deal, a Cardiff capital region business organisation will be established to ensure that there is a single voice for business to work with local authority leaders.

This agreement marks the next step in an ongoing process to devolve funding, responsibilities and powers from central and devolved Governments to the Cardiff capital region. I look forward to continuing to hold discussions with the capital region and the Welsh Government in the future, to build upon today’s agreements.

Copies of the agreement will be placed in the Libraries of both Houses.

[HCWS621]

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—