Welsh Affairs

Stephen Kinnock Excerpts

Thursday 2nd March 2023 Commons Chamber

[Stephen Crabb]

The hon. Gentleman makes an important point. He is exactly right, and I encourage him to follow the output of the Welsh Affairs Committee as we continue our inquiry into broadcasting in Wales. He may have seen a few weeks ago that Netflix chose to use the incredibly important forum of the Committee to announce its investment in its first Welsh-language drama. It is great to see Welsh-language productions from Wales, made in Wales and projecting the Welsh language through new global streaming platforms. It is an opportunity to project Welsh culture and identity, and perhaps a challenge and even a threat to some of the traditional broadcasters. Overall, he alludes to a healthy picture.

I referenced our visit to north America, where there are huge opportunities. I often think that we perhaps make too much of the slightly odd colonial experiment in Patagonia and not enough of the Welsh diaspora that moved to the US, particularly in the late 18th and early 19th century. Welsh people were at the heart of the US industrial revolution experience. When the Welsh Affairs Committee was in Washington in January, we had the opportunity to visit Capitol Hill and were hosted by the Friends of Wales Caucus in Congress.

I thank Congressman Morgan Griffith from Virginia for welcoming us and for the fascinating discussion that we had in his office about the links between our nations. He has people in his district with strong Welsh heritage, and there are towns and villages in his district and throughout Pennsylvania that bear the names of Welsh towns and villages that we are familiar with. That means that there are opportunities for us. Sometimes, I think that the Irish and Scottish make far more of their diaspora and use it more intelligently to further strategic and economic objectives than we do. We were looking at that as a Committee. I pay tribute to Ty Francis for his work in creating New York Welsh, a diaspora community in New York City, and for his further work to create a network of people with Welsh heritage internationally who all want to feed back and support the growth of Wales back home.

I will conclude on an area where I feel upbeat and optimistic this St David’s day—energy. Wales has an important role to play in helping the UK to meet energy security objectives and to make strides towards achieving net zero. Wales already has an enormous heritage when it comes to energy. In my constituency, Milford Haven has a history of 50 years of oil and gas processing and import. The opportunity in front of us is the launch of a brand-new industry—floating offshore wind. We have made great strides with fixed-bottom offshore wind in this country, particularly on the eastern seaboard of the UK. But with floating offshore wind, we can have bigger turbines, go to deeper waters where it is windier, get a better load factor on the turbines and create more electricity.

With this new industry we cannot repeat the mistakes of the past. I am looking forward to the remarks by the hon. Member for Aberavon (Stephen Kinnock), who has been working hard on that. If we do this right, we can create new domestic economic opportunities and genuine supply chains here in the UK and in Wales, and centre this new industry around Port Talbot and Milford Haven. It is great that our ports are collaborating on the Celtic freeport bid. It would be wonderful to hear from the Secretary of State when we might hear the outcome of that bidding process. That is the prize in front of us that is worth capturing. Big industrial economic opportunities do not come along that often in Wales, as you know, Mr Deputy Speaker. We have one now and we should seize it.

[Stephen Kinnock (Aberavon) (Lab)]

The right hon. Gentleman is making an excellent speech and some very good points about floating offshore wind. On ensuring that we capture the benefits in Wales, does he agree that a very hard line should be taken with the Crown Estate to ensure that when leasing the seabed, there are clear conditions on the developer to ensure that the manufacturing, the supply chain, the jobs and the skills stay in Wales? We must not make the tremendous and awful mistakes of the past, when we allowed all the supply chains to go overseas.

[Stephen Crabb]

I agree. We need to achieve alignment between the Crown Estate’s leasing auctions, the Treasury’s contracts for difference process and the commitments that developers make. The hon. Gentleman is exactly right that we need to hold their feet to the fire—whether the developers’ or the Crown Estate’s. When companies make promises to create x number of jobs and apprenticeships in his constituency or mine, we want them to be realised. That is the opportunity in front of us.

I have probably exhausted my time. I hope that you feel as upbeat and optimistic as me, Mr Deputy Speaker. We spend a lot of time in this Chamber debating the problems and challenges facing Wales. Sometimes, as a nation we are prone to a little too much negativity. I hope on this St David’s day we can be positive and upbeat, and certainly follow the spirit in which the debate was opened by the hon. Member for Swansea East.

--- Later in debate ---

[Stephen Kinnock (Aberavon) (Lab)]

I wish everyone a belated happy St David’s day if I did not wish it to them yesterday. I congratulate my hon. Friend the Member for Swansea East (Carolyn Harris) not only on her wonderful, poetic opening speech, but on the Everyone Deserves a Christmas, Summer and Easter campaign. It seems to be an all-year-round campaign this year. I have had the pleasure of taking part in that initiative, which does a huge amount to tackle holiday hunger by providing hampers to families who are struggling at Christmas. I am proud to say that those hampers provided 447 children and their families across Neath Port Talbot with a lovely Christmas dinner with all the trimmings, plus lots of other treats. It was a great pleasure to be part of the hamper packing process, which also enabled us to hang out with some of our heroes from the Ospreys, the Aberavon Wizards and the Swans—even though I say that as a Bluebird.

That achievement was possible only thanks to the generosity of businesses and individuals across Aberavon and the whole area covered by the Everyone Deserves campaign, whose donations helped pay for the hampers. It also reflects the fact that many of my constituents, and I am sure those of all of our colleagues assembled here, are struggling with the rocketing cost of living. Record energy prices, soaring costs of household essentials, falling wages and the highest interest rates for 40 years are really biting. Real wages in Aberavon have plummeted since 2010, leaving my constituents £1,123 per year worse off on average. Incomes are simply not keeping pace with rising costs, and they no longer cover the essentials. Many talk of a cost of existing crisis rather than a cost of living crisis. Constituents are not putting the heating on or are cutting back on essential groceries. They are worried sick about whether they can pay their energy bills or afford their rent or mortgage payments. The numbers of people turning up to food banks is up, up, up.

In December, more than 33,000 people in Wales experienced financial hardship to the extent of accessing £2.36 million from the Welsh Government’s discretionary assistance fund. The Welsh Government have since pledged £18.8 million to the fund to protect people who are facing financial hardship. Despite having fewer economic levers at their disposal compared with the UK Government, the Welsh Government have stepped up to the plate by providing a £51 million household support fund targeted at those who need it most. They have doubled the winter fuel support payment to £200 to help those on low incomes with their energy bills, and have provided £1.1 million to support food banks, community food partnerships and community hubs.

The Welsh Labour Government are doing their level best to shield Wales from the worst of the crisis, but the reality is that energy bills will go up by £900 in April. Hard-working families are feeling the pinch, while oil and gas giants are celebrating record profits and laughing all the way to the bank. On behalf of my Aberavon constituents, I urge the UK Government to step up and help them and others across the country by closing the loopholes and bringing in a proper one-off windfall tax on energy giants. The money raised could be spent on a package of support for energy bills, passing savings on to households immediately, and stopping the energy price cap going up in April. An end must be put to the scandalous penalties imposed on prepayment meter customers, who should not be paying more than those who pay by direct debit. There also needs to be a three-month moratorium on the forced installation of prepayment meters.

Learning the lessons of the energy crisis is essential to prevent it from happening again. If our country is to better protect itself, we must become more resilient and less exposed to fluctuating global energy prices. That brings me on to a topic that the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) mentioned: floating offshore wind. FLOW will be hugely important in allowing our country to stand more firmly on our own two feet. It will also be essential in helping us reach net zero.

Port Talbot, along with the right hon. Gentleman’s constituency, has the potential to be at the heart of this 21st-century green industrial revolution. Our deep-sea harbour, our land for development, our excellent transport links, our world-class steelworks and our existing manufacturing supply chains and skills base make us well placed to deliver 24 GW of FLOW in the Celtic sea, a quarter of the UK’s total target.

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

My hon. Friend hits the nail on the head. If we are to go down that road, we have to do it on a scale that will make a real change. The problem with our energy policy has been that we have tended to dabble in things without putting investment in. These things are not going to happen by themselves. We need to put investment in, and we need to put it in now.

[Stephen Kinnock]

My right hon. Friend is absolutely right. I think we can agree that energy policy across the UK has tended to ebb and flow. It has not given investors the clarity or the long-term stability and certainty that they need. These are big investments that require confidence in the Government that things will not shift from one thing to another. Stability, strategic purpose and mission-driven government are what we need.

FLOW is a genuine game changer for the south Wales economy and the labour market, creating thousands of high-quality, high-skill local jobs. It is a once-in-a-generation opportunity to transform Aberavon and south Wales and turn us into a green power superpower, and what makes it even more exciting is that it can support green steel making. The steel industry has been crying out for years for UK Government support to mitigate crippling energy costs. UK steel producers pay an estimated 63% more than their German counterparts. They need to be able to compete internationally on a level playing field. Tata Steel estimates that producing 60 floating substructures and turbines a year for FLOW would require 6 million tonnes of steel. The real win-win is that the green, clean energy produced through FLOW can help to produce the green steel that Tata plans to make in its future electric arc furnaces, which will replace the current blast furnace technology, at a lower cost per unit than is possible with the sky-high electricity prices that are currently holding our steelworkers back.

There are two key decisions that the UK Government, working in very close collaboration with the Welsh Government, need to make to kick-start this hugely exciting opportunity. The first is on the freeport bid. Delivering FLOW at the necessary scale and speed will require support. Backing the Celtic freeport bid can unlock £5.5 billion of new investment and 16,000 jobs. It will also provide the launchpad for accelerating the development of FLOW and bring household energy bills down. This is not a transactional opportunity; it is a transformational opportunity.

The second decision is on the floating offshore wind manufacturing investment scheme. FLOWMIS is another vital building block of this game changer for renewable energy. The Welsh Government have already stepped up to the mark and provided a £1 million grant to help the transformation of Port Talbot dock, with a dry dock and other facilities necessary to provide the manufacturing capability for FLOW. It is time the UK Government followed their lead and urgently launched the FLOWMIS programme. FLOWMIS co-funding would demonstrate the UK Government’s clear long-term commitment to developing the ports and the sector, giving confidence to investors and other funding providers to back the project and unlocking sizeable private sector investment potential. I really hope that the Secretary of State will say something about FLOWMIS at the Dispatch Box today.

For much of the 19th and 20th centuries, Welsh coal, slate, copper and steel were known around the world. In the 21st century, if the opportunity is seized, Wales could just as well be known for FLOW. The prize is clear: the creation of a new long-term industry whose high-value manufacturing has “Made in Wales” firmly embossed on the tin. Wales was the cradle of the first industrial revolution; now let us make it the cradle of the green industrial revolution.

It is not just FLOW that could be embossed with “Made in Wales”. Universities in Wales have been at the forefront of innovative ideas that could change the way we live, thanks to the £370 million of EU structural funds that have been invested in university-led projects in Wales. SPECIFIC—the sustainable product engineering centre for innovative functional industrial coatings—is a Swansea University project based in Aberavon. It has been doing wonderful work on creating buildings that store and release heat and electricity from solar energy, but no replacement funds offer the parity of support that is needed for that research and innovation work. More than 60 projects across Wales, including SPECIFIC, now face a very uncertain future. Approximately 1,000 jobs are at risk. Will the Secretary of State give a commitment today to speak with colleagues about bridging funding to enable these important projects to continue, to prevent Wales from losing this talent and to avoid the cliff edge that exists under the shared prosperity fund?

My Aberavon constituents and the people of Wales need something better. They need a UK Labour Government working in tandem with a Welsh Labour Government to deliver for Wales and deliver for our entire United Kingdom.