Welsh Affairs

Wayne David Excerpts

Monday 19th March 2018 Commons Chamber

[Alun Cairns]

I want to make some progress, then I will give way.

I was discussing the opportunities for Wales as we leave the European Union. I hope Members throughout the House will welcome the news earlier today that an agreement in principle has been reached with the European Union on the implementation period. As the Prime Minister has said, that shows that with good will on both sides, it is possible to agree an arrangement that works for all sides.

As we leave the European Union, the Union of the UK is more important than ever before. We are a Union of four nations developed over a long history, communicated through a common culture and a shared identity. As a result of joint working and the collaborative approach taken by the UK Government and the Welsh Government, we have delivered a fiscal framework that secures Welsh funding over the long term and a Wales Act that puts Welsh devolution on a stable footing.

Despite what is often reported in the press, the relationship between the Governments is positive, and I take pride in that, along with the First Minister. While there will undoubtedly be challenges ahead, Wales is well placed to benefit from the many opportunities that leaving the European Union offers, such as the chance to form new partnerships, maintain relationships with old allies and become true beneficiaries of the UK being a global leader in free trade.

[Wayne David (Caerphilly) (Lab)]

The Secretary of State must be concerned by a leaked document from the Government five weeks ago indicating that there would be a 9.5% reduction in Wales’s economic growth rate if the Government failed to achieve a deal with our European partners. If the Government are considering the possibility of no deal, he must be extremely concerned about that projection.

[Alun Cairns]

The hon. Gentleman tempts me, but he knows that the Government do not comment on leaked documents. Statements have been made that those documents were not complete, nor were they approved by Ministers.

I am happy to talk about the strength of the Welsh economy and the opportunities we have to exploit the UK being a global leader in free trade. Wales was the fastest-growing nation in the UK in 2016. We have 98,000 more people in work since 2010, with 44,000 more women in work and unemployment down by 48,000 compared with 2010. That demonstrates the strength of the Welsh economy, in which I have significant confidence.

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[Susan Elan Jones (Clwyd South) (Lab)]

Will the Secretary of State give way?

[Wayne David]

Will the Secretary of State give way?

[Alun Cairns]

I will give way in a moment, but I want to finish this important point.

This means that we expect to be able to devolve 40 areas with either no frameworks or only informal agreements. The result is that the vast majority of powers returning from Brussels that intersect with devolved competence will fall under the full control of the devolved Administrations from day one of exit.

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[Alun Cairns]

Clearly, we will consult, but we will also use and honour the Sewel convention, which is the basis on which legislation has been developed and drafted ever since 1999—with the agreement of the devolved Administration.

[Wayne David]

rose—

[Alun Cairns]

I will give way to the hon. Gentleman, but I then want to make some progress.

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[Wayne David]

The Secretary of State is very kind. This is an important point, and it is important to have clarification. He has mentioned the retention of powers “on a temporary basis”. How long is temporary?

[Alun Cairns]

The reason for using the word “temporary” is that we want to bring in order-making powers for 24 areas of law to use them to protect the UK market until we have reached a position of agreement with the devolved Administrations on how we will enact legislation to put in place frameworks on those areas of law. In each and every one of the areas, we will, as we progress through the 24 areas, use the Sewel convention. This demonstrates the pragmatic, positive process we are pursuing. I could easily give some simple, practical examples of why this is important, but Wales has certainly more to gain than it has to lose. I have highlighted the fact that 80% of Welsh output goes to the rest of the UK, and that undermines—sorry, underlines; let me clarify that this underlines—the importance of doing the right thing on these 24 areas of law, because one part of the United Kingdom should not be given the power to hold up every other part.

Much attention is understandably given to the EU market, but the UK market is central to the success of the Welsh economy, and we must recognise the importance of the UK market to investment and jobs. As I have mentioned, 80% of Welsh output goes to the rest of the United Kingdom, so protecting the internal UK market will protect jobs and investment in Wales and across the UK. Where these limited common frameworks are needed or indeed essential, we will continue to apply the principles of the Sewel convention, seeking the support of the devolved Administration at every stage. This is an entirely reasonable proposition, and follows the foundations on which devolution has been established since 1999. I hope that the Welsh Government and Labour Members will recognise that we have moved a considerable way on this, and will see the importance of providing as much certainty and continuity as possible for businesses in Wales. We will continue to work closely with the Welsh Government to secure their agreement to promote a positive recommendation on a legislative consent motion in the Assembly.

Advice on the 24 areas, as well as on the others that we do not want to be subject to an order-making power, has come from industry itself. An expert panel was established, and businesses have raised genuine concerns about their UK prospects being undermined. Industry has advised us all the way along, and that is how we have ended up with these 24 areas. Any action to scupper that will be undermining—genuinely undermining —industry and business, as well as investment prospects, in Wales.

Agriculture is a key area of the Welsh economy and central to our way of life across Wales. Last summer, I hosted the Environment Secretary at the Royal Welsh show where, in one his first official engagements, he met the Farmers Unions of Wales, the National Farmers Union Cymru, the Country Land and Business Association and other key stakeholders, as well as my hon. Friend the Member for Brecon and Radnorshire (Chris Davies), who was working at the show that day. Our engagement with them has continued since then, with all of them having regular access to UK Government Ministers and officials. Most recently, the farming Minister—the Minister for Agriculture, Fisheries and Food, my hon. Friend the Member for Camborne and Redruth (George Eustice)—met a group of representatives at the Royal Welsh agricultural showground to discuss our exit from the EU, but also to talk about longer-term plans for the UK’s environment and agriculture sectors.

At many of those meetings, if not all, geographical indicators have been raised, because we all recognise the importance of labelling, marketing and branding our produce. A moment ago, I talked about clause 11 and frameworks. This is a good example of why a UK approach is needed to protect the interests of producers and consumers. We obviously need common regulations on food labelling across the UK because we rightly want to protect the status of Welsh lamb, Welsh beef, Halen Môn and many other brands, so that they are recognised and protected across the UK and beyond. That does not mean, as has been suggested, a one-size-fits-all approach to branding. We are committed to protecting all 84 of the registered geographical indicators now and after EU exit.

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[Christina Rees]

And we do, and I will see the hon. Gentleman in the gym in the morning.

The law derived from the full Welsh Government Bill was introduced in the Welsh Assembly on 7 March 2018, but the Welsh Government are clear this is not their preferred option. What the Bill categorically does not do is to block or frustrate Brexit. The Welsh Labour Government respect and accept the outcome of the EU referendum. However, the vote to leave the EU was not a vote to reverse devolution. The current devolution settlement in Wales has been backed by two referendums, in 1997 and in 2011. Brexit is not an excuse to ignore those votes.

I repeat that serious matters confront us. I doubt there has been a St David’s day since the second world war when there was so much at stake for Wales. The future of whole sectors of industry, as well as the ability of families simply to get by, hangs in the balance. The people of Wales have a right to see a UK Government acting in their best interests: protecting their jobs and investing in the public services they rely on and the infrastructure we desperately need to secure Wales’s future.

[Wayne David]

Does my hon. Friend agree that one of the most unfair things we regularly see in our surgeries is the manifestation of the assessment system for benefits, particularly with regard to employment and support allowance and personal independence payments? That is greatly unfair and is entirely due to what the Government are doing here in London.

[Christina Rees]

I totally agree. My surgery is full of people who are desperately trying to make ends meet and who have been subject to the terrible PIP measures.