Aviation Sector

Wayne David Excerpts

Thursday 10th September 2020 Commons Chamber

[Wayne David (Caerphilly) (Lab)]

General Electric Aviation Wales, in Nantgarw, near Caerphilly, it is one of the most important employers in south Wales. It employs 1,400 people, has an excellent apprenticeship scheme and is recognised as one of the key anchor companies in the whole of Wales. As the site maintains and overhauls jet engines from 90 airlines around the world, it has been hit hard by the contraction in air travel. In the late spring, the company announced 180 voluntary redundancies. That was a serious blow, but at the beginning of July the company announced the loss of 369 jobs—quality, highly skilled jobs that neither the company nor, indeed, south Wales can afford to lose.

The Welsh Government are doing their utmost to be supportive, but what is really needed today is for the Westminster Government to be proactive, especially with regard to extending the furlough scheme. This would not be a long-term measure, because there will be an upturn in the number of flights and there is absolutely no doubt about the effectiveness and efficiency of the Nantgarw site. In fact, in early 2017 Nantgarw was selected, after intense competition, as the site to repair and overhaul the GE9X, the world’s largest and most efficient jet engine.

If the Government do not give the necessary support to General Electric in Nantgarw, this will be in sharp contrast to what is happening in so many other countries. In France, Germany and Italy, for example, there is great Government support for the aviation industry. The Governments of those countries are giving massive support to their companies, because they realise that it is a very necessary investment.

Let me be clear that if the Government do not support the sector, and Nantgarw in particular, when jet engines need maintenance, the sector will again be at a huge competitive disadvantage. Once skilled jobs are lost, they are extremely difficult to replace.

So I ask the Government to please step up to the plate and do what is necessary. They must come forward immediately with a comprehensive support package for the sector. In particular, they need to support furlough.

No-Deal Brexit: Cross-channel Freight

Wayne David Excerpts

Thursday 2nd May 2019 Commons Chamber

[Chris Grayling]

My hon. Friend makes a very good point. It underlines one of the things that makes the business community much more concerned by a Corbyn Government than by Brexit, because Labour Members not only do not understand business—they hate business and do not believe that the Government should work with business. We hear time and again how dismissive they are of business, and this is just another example.

[Wayne David (Caerphilly) (Lab)]

Do the Government’s interesting U-turns reflect a change in their attitude and policy towards Brexit itself?

[Chris Grayling]

Our policy has been consistent from the start: we want to leave the European Union with a deal. We will continue to work to do so but will make appropriate plans for all eventualities.

EU Exit Preparations: Ferry Contracts

Wayne David Excerpts

Tuesday 5th March 2019 Commons Chamber

[The Secretary of State for Transport (Chris Grayling)]

As I have explained to the House on several occasions, the Government entered into contracts with ferry operators to provide additional ferry capacity and services into the UK as part of no-deal contingency planning. However, as we have heard clearly this afternoon, the reality is that the SNP does not believe in preparing for no deal. Even though the hon. Member for Kilmarnock and Loudoun (Alan Brown) accepts that it is a possibility, a risk and a danger, he does not support us in preparing for the risk of a no-deal exit—[Interruption.] The Labour Front-Bench team say, “Take it off the table,” but we can only take no deal off the table by reversing Brexit or agreeing a deal. The reality is that Labour and the SNP have spent week after week trying to prevent a deal, voting against the deal and trying to disrupt the process of getting towards a deal. Frankly, they are acting in anything but the national interest in doing so. We, however, have been acting in the national interest in preparing for all eventualities.

[Wayne David (Caerphilly) (Lab)]

If the Secretary of State really believes that no deal should be an option, why on earth did the Government not begin preparations sooner?

[Chris Grayling]

We have been preparing for a no-deal exit for months and months. There was a particular reason, as I will set out in a moment, for this particular procurement at this particular time, but my Department has been working for months to prepare for the risk of no deal. That can be seen in the new international aviation agreements, in Kent, where we have put in alternative resilience systems to the deeply disruptive Operation Stack, and in many other things.

--- Later in debate ---

[Wayne David (Caerphilly) (Lab)]

What a farcical situation. It gives me no pleasure to say that this Government have become a laughing stock to people not only in this country but throughout Europe and the world. In many ways, that is epitomised by one individual: the Secretary of State for Transport.

It came as no great surprise that Eurotunnel was aggrieved by the decision taken by the Secretary of State for Transport and his colleagues. I am no expert on procurement policy or tendering law, but it strikes me as common sense that there should have been a tendering process, especially as it was very obvious that the Government were making a decision late in the day in response to a predicament of their own making. If they were serious about considering a no-deal Brexit, they should have begun the preparations as soon as this House triggered article 50. They decided not to, and to delay it, so they found themselves in a predicament and decided not just to avoid the law but to consciously, perhaps, break it as well.

When the Secretary of State for Transport announced that the procurement process was not being followed, he announced to the House that three contracts were being issued—for three “compliant bids”, as he said. Towards the tail end of that ministerial statement, I asked a question that I thought was pretty innocuous, and I expected a certain reply. I asked:

“In the interests of transparency, will the Secretary of State indicate to the House which companies were considered for the contracts?”

At that point, I realised that the procurement process had not been followed, but I assumed that the Secretary of State had at least had a shortlist and decided from that which companies were best equipped to fulfil the requirements. The response was significant, because the question was totally ignored. The Secretary of State simply said:

“We received three compliant bids, all of which we judged acceptable and accepted.”—[Official Report, 8 January 2019; Vol. 652, c. 202.]

In other words, there was not just an avoidance of the procurement process or a dilution of it; there was a complete and utter conscious avoidance of it. Instead, we had cherry-picking—of the worst kind—of the three companies.

We have learned now that the Government have paid £33 million to Eurotunnel to avoid the case going to court, because it is pretty clear that the Government did not have a leg to stand on. The question that has already been asked is where that is coming from. Are there contingencies available that we do not know about? Will there be further public expenditure cuts? Where precisely will this £33 million of unplanned expenditure come from?

It is important to recognise that Eurotunnel had plenty of time to prepare if it had been given the opportunity to make a bid. There was clearly no urgency when the Government chose to take the action they did. It is also important to recognise that although the Government have said that they are coming to an agreement with Eurotunnel and will pay that £33 million, they have unusually stipulated what the money will be used for, as has been mentioned. We understand that the money is for the development of infrastructure, security and border measures that will guarantee the flow of vehicles carrying urgent and vital goods to help keep supply chains moving that are essential to both industry and consumers. It is interesting that the Government have stipulated that, and it begs the question that has already been raised by the shadow Secretary of State: what is the legal basis for taking such action and making such a stipulation?

Andrew Dean, an expert in procurement law who works at the law firm Clifford Chance, used to advise the DFT and is widely recognised as an expert in his field, said:

“If Eurotunnel were required to develop or redevelop infrastructure that delivers or supports a public function as part of this settlement, there is a risk it could be construed as another piece of public procurement without open and transparent competition… In which case the government would be back to square one, with other potential providers able to challenge the process.”

My question to the Minister is this: has the Department considered that possibility? What advice is he currently receiving from his departmental legal team on where the Government now stand? There is a distinct possibility that they are going from the frying pan into the fire. They have apparently solved one problem of their own making, but they have another problem, also of their own making, that they will possibly have to confront in the very near future. That is an important issue.

All of us are extremely concerned about the situation in which we find ourselves. At one point I thought the Government were surely not serious about considering the possibility of a no-deal Brexit. I suspect that initially they were not serious about pursuing it, but as time has gone on and the negotiations have been more and more unfruitful they have found themselves inevitably in the situation of having to make quite extreme, ill-thought- out contingency plans. I hope very much indeed that the Government do not have to introduce those plans. The message has gone out from right across this House, as well as from industry, the trade union movement and civil society generally: for goodness’ sake, even at this late stage, end this farce once and for all, and take no deal off the table.

Seaborne Freight

Wayne David Excerpts

Monday 11th February 2019 Commons Chamber

[Chris Grayling]

I do not think that Opposition Members are listening at all to what I have said. The agreements were all in place and ready to be signed, but the reality is that, at this moment, Arklow took a step back and did not want to continue. We had commitment now, a month ago and at Christmas time that Arklow was backing this proposal, but to be on the safe side—to be sure—we set up a contractual structure that meant that the taxpayer had no exposure unless the service was delivered. That was the right thing to do.

[Wayne David (Caerphilly) (Lab)]

Last month, the Secretary of State said to this House:

“We contracted with Seaborne Freight because the service it proposes represents a sensible contingency”—[Official Report, 8 January 2019; Vol. 652, c. 190.]

Given what we now know and with the benefit of hindsight, will the Secretary of State have the humility to come to the Dispatch Box and say sorry?

[Chris Grayling]

It was a sensible contingency. If we require that capacity now, we will have to use longer routes through the North sea, when it would be better to go from Ramsgate to Ostend. We have the resources, facilities and capacity available to deal with what we have identified as the needs of organisations such as the NHS.

Seaborne Freight

Wayne David Excerpts

Tuesday 8th January 2019 Commons Chamber

[Chris Grayling]

The common transit convention is the international agreement by which trade flows across multiple countries. It has already been announced that in leaving the European Union the United Kingdom will remain part of that convention, which will play a significant part in ensuring that trade flows freely in all situations. None the less, we need to make sure that we cannot get blockages at key ports, and that is what we are working to do.

[Wayne David (Caerphilly) (Lab)]

In the interests of transparency, will the Secretary of State indicate to the House which companies were considered for the contracts?

[Chris Grayling]

We received three compliant bids, all of which we judged acceptable and accepted. Two of them were from major operators that will provide around 90% of the capacity, plus there was this small additional contract. Should we choose to return to the market, there is also potential interest in the provision of extra capacity. I hope we will not need that, because I hope that we will have a proper deal come next week.

Severn Bridges (Tolls)

Wayne David Excerpts

Tuesday 21st July 2015 Westminster Hall

[Jessica Morden]

I thank the hon. Gentleman for his intervention. Various sectors, particularly transport but also tourism, are impacted by the tolls. Evidence from tourism businesses in the west suggests that the tolls make it more difficult to attract visitors from the south-west of England, for example. The charge also acts as a psychological barrier, as people have to pay to enter Wales.

[Wayne David (Caerphilly) (Lab)]

Support for my hon. Friend’s argument is strong and broad and comes not only from the Welsh Government, small and medium-sized businesses and the CBI in Wales, but from Welsh local government. A letter sent to the Prime Minister by the leader of Neath Port Talbot County Borough Council only a few months ago also made the case strongly, which is indicative of the wider view of Welsh local government.

[Jessica Morden]

I agree wholeheartedly. There is probably now a case for a broader campaign to make such points, encompassing local government, business, chambers of commerce and so on.

Owens logistics, which is based in the constituency of my hon. Friend the Member for Llanelli (Nia Griffith) but has a main depot in Newport, is a haulage company that has long campaigned for a reduction in the tolls, on which it spends half a million pounds a year. That money just comes off the bottom line. It is an extra cost that the business has to pay that it cannot pass on to its customers. Owens has been quite open with me that it is thinking long and hard about its business decisions, because if it transferred parts of its operation across the bridge, it would avoid the tolls. That is the sort of decision that businesses in our area are making, which is precisely why we need clarity from the Government about further toll reductions.

The South Wales chamber of commerce told me about the impact that the tolls have on the tourism sector and the logistics industry. As I said, if logistics companies choose to pass the cost on to the customer, it adds to the cost of goods produced in Wales, making them less competitive, or increases the costs for businesses buying goods from England. The chamber of commerce also said that its colleagues in Business West say that it is picking up the fact that businesses are choosing to locate on the English side of the bridge due to the tolls.

Small businesses are also affected. I received an email this morning from a business that rents out marquees and employs 38 people. The cost of the tolls to the business over the summer is an extra £1,000, making it difficult for it to compete with companies on the English side of the bridges.

[Jessica Morden]

I thank my hon. Friend for his well-made point. The Welsh Government certainly agree that lowering the tolls would help to stimulate the Welsh economy.

Other hon. Members mentioned commuters earlier. In my constituency, many people in Magor, Rogiet, Caldicot, Undy and so on commute over to Bristol for work every day. It is a strong commuter area and the tolls’ effect is keenly felt, particularly by those who are looking for work in Bristol but cannot absorb the toll cost. Over the years, I have met people facing a bill as part of the Child Support Agency process, for example, who have said to me, “I work for this distribution company in Bristol, but once I have absorbed the bridge costs, I am on fairly low pay. How am I going to survive?” People’s employment opportunities are being limited. The only concession available on the Severn bridges is the TAG system, which allows four free journeys out of 22 in a month. Taking bank holidays and annual leave into account, that is not much of a bargain. We could do a lot more on that.

Some 12,500 people commute to England from Newport and Monmouthshire. Many of them use the bridges, which restricts their access to jobs and acts as an extra tax. My plea to the Minister today is for a consultation. We are just two years away from decisions being made, so I ask the Department for Transport to give bridge users, businesses and hon. Members a say in how we move forward and help our constituents by getting the tolls down. There is not long to go, so it is high time that we had that conversation. Successive UK Governments have failed—the Welsh Government have done the same—to undertake studies into the bridges’ economic impacts. It is time that we asked the Department for Transport to collect further evidence so that everyone can have an input.

Moving on to the thorny issue of bridge finances, having lived with the Severn bridges in the capacity of an MP for many years I can say that the finances are as clear as mud. Getting clarity is terribly difficult, so I ask the Minister for some figures today so that we can have an informed debate going forward. The concession was established by the Severn Bridges Act 1992, which, in retrospect, was clearly far too restrictive. It allowed the company to whack up the tolls every year, with no one being able to have a say and the Government arguing that they have little flexibility to step in and reduce tolls without incurring taxpayer liability. However, as I said earlier, they did step in in the case of the Humber tolls.

As we know from previous Welsh Affairs Committee inquiries, the company has done very well over the years. In oral evidence given to the Committee in 2013, we heard that the costs of the bridges for Severn River Crossing plc were some £50 million, including depreciation at £38 million and operational costs of £13 million. That £50 million compares with an annual turnover of £81 million. Will the Minister confirm the latest position and update those figures? Having a clear idea of the company’s operational costs and profits would be helpful.

The Government also do pretty well out of the bridges. They receive significant tax receipts from VAT and from the removal of the industrial buildings allowance, which was a tax relief that Severn River Crossing plc used to benefit from. From the answer to a recent parliamentary question, we found out that Severn River Crossing plc paid £154.2 million in VAT to Her Majesty’s Revenue and Customs between 2003 and 2014. However, we have been unable to get a specific figure from the Government on how much they have benefited from the removal of the IBA. Will the Minister commit today to providing that figure? Will the Government be straight about how much they have benefited?

I also hope that the Government will remedy as early as possible the situation whereby they and the company are protected from financial pain but my constituents and other users of the crossings are not. Users always end up paying, while the company is always protected. When the industrial building allowance was withdrawn, the company was allowed to extend its tolling mandate to compensate for that. The same was true of the VAT increase implemented by the coalition Government. In the spirit of fairness, I wonder whether the Government could reduce the tolling mandate given that the Chancellor has announced further reductions in corporation tax, which will further benefit Severn River Crossing plc. The first corporation tax cut will be in 2017-18, before public ownership. How will we ensure that taxpayers do not lose out when the company gets yet another tax reduction?

The main point on which my constituents would like an answer is about VAT. Given that the Government have benefited from the tax income—VAT of £154 million—why are they still arguing for tolling to continue after 2018 at a level high enough to recoup an £88 million debt? Clearly, the Government have done extremely well out of the bridges, so is it not time to pay people back a little by reducing the toll?

I want to allow others to speak, although hon. Members have already raised a lot of issues to do with the bridges. It would be incredibly helpful to know when the concession will end, because that has been a moveable feast—it was 2016, then 2017 and is now 2018. Will the Minister update us on when the Government expect the concession to end and the bridges to come back into public ownership, and on the maintenance of the bridges? A previous Minister said in reply to a similar debate to this that he would keep an eye on what he was inheriting. Will the Minister tell us a little more about what the Government expect to inherit when the bridges come back into public ownership?

May we have a discussion about free-flow technology? In various oral evidence sessions of the Welsh Affairs Committee, the company used to argue that the technology to differentiate between cars and vans was not available. Given that the Government are moving to reduce the cost for vans, surely implementing such technology will be easier. I want a maintenance-only toll, but I also want the Government to add into the mix a re-examination of what concessions might be given locally.

[Wayne David]

Will my hon. Friend express a view on the suggestion that control of the bridges should pass to the Welsh Government in 2018?

[Jessica Morden]

My honest answer is that I do not care who runs the Severn bridges, as long as the tolls come down. If the tolls were reduced to a maintenance-only rate, I would not care who was running them.

Among the concessions suggested by business are those for off-peak travel, or free travel for hauliers during off-peak times.

Finally, a more than strong suspicion locally among constituents and businesses, and certainly among hon. Members, is that the Government treat the Severn bridges as a bit of a cash cow. I do not want to see that in two or more years’ time, when the bridges return to public control. Will the Minister promise to engage with hon. Members, businesses, commuters and our constituents, to find practical solutions to all the problems and lower the cost considerably for my constituents?

Great Eastern Main Line

Wayne David Excerpts

Tuesday 11th November 2014 Westminster Hall

[Claire Perry]

I was just moving on to what I am going to do. I will be delighted to write to or, even better, meet my hon. Friend to talk specifically about improvements for his hard-pressed commuters.

My hon. Friend the Member for Ipswich will be delighted to hear that I will be in his city—[Interruption.] Excuse me, his town.

[Wayne David (Caerphilly) (Lab)]

Village?

[Claire Perry]

Town, definitely, sir. I will be in my hon. Friend’s town on Friday, where I look forward to attending the Suffolk rail conference and hearing about the importance of investment in the region and understanding a little more about what passengers require.

In conclusion, the report is a wonderful piece of work. I pay tribute to all those involved and look forward to working with my hon. Friends in the room—it would be lovely to have some input from Opposition Members on such an important issue—in trying to implement what is feasible and practicable.

Flooding: Transport Disruption

Wayne David Excerpts

Thursday 13th February 2014 Commons Chamber

[Mr McLoughlin]

I might just want to think a bit more about promising that there will always be diesel trains. We are investing a huge amount of money in the new intercity express programme trains to serve on the east coast route. I cannot give my hon. Friend an absolute commitment at the Dispatch Box today, but I will certainly investigate the point that she has made.

[Wayne David (Caerphilly) (Lab)]

Given that the Secretary of State obviously has difficulties with Barnett consequentials, may I simply ask him how much extra money will be coming to Wales?

[Mr McLoughlin]

I think that that is a question for the Secretary of State for Wales—[Interruption.] I do not have any problems whatever with the Barnett formula. The point that I am making about Network Rail is that it serves England and Wales.

Oral Answers to Questions

Wayne David Excerpts

Thursday 18th October 2012 Commons Chamber

[Maria Miller]

The important thing is that women and parents are able to balance their work and family lives. Our work on the modernisation of the workplace is important to that. I also reiterate my comments about universal credit and the ability of women to access child care support when they are working shorter hours. Some £300 million is being invested in that. That is something that was not forthcoming under a Labour Government.

[Wayne David (Caerphilly) (Lab)]

5. What assessment she has made of the effects of Government policies on efforts to tackle violence against women.

[The Minister of State, Home Department (Mr Jeremy Browne)]

The Government’s approach to tackling violence is set out in our strategy to end violence against women and girls and the supporting action plan. We monitor the delivery of the strategy and the impact of wider Government policies through regular cross-Government delivery boards, stakeholder meetings and inter-ministerial groups.

[Wayne David]

The Minister will be aware that earlier this year Professor Walby prepared a report showing that no fewer than 230 women every single day were denied refuge accommodation through lack of space. Has his Department made an assessment of that report?

[Mr Browne]

The hon. Gentleman raises an extremely important issue, because refuges can play a key role in helping women who have been the victims of domestic violence, as I have seen in my constituency. That is the case across the country, as well, so I shall certainly consider any recommendations that we can incorporate further to improve our response to this terrible crime.

Intercity Express and Rail Electrification

Wayne David Excerpts

Tuesday 1st March 2011 Commons Chamber

[Mr Hammond]

It is not about diesels. There will be no diesel traction locomotives in the mix; there will be bi-mode electric-diesel trains and all-electric trains. The services to Aberdeen and Inverness will be provided by the bi-mode trains, running straight off the wires at Edinburgh and on to the existing routes, so that service will be protected.

[Mr Wayne David (Caerphilly) (Lab)]

In the spirit of St David’s day, I respectfully remind the Secretary of State that St David probably lived in west Wales. Has he made any assessment of the extent to which west Wales and Swansea will lose out from his partial electrification of the south Wales line?

[Mr Hammond]

Many people coming from England will access west Wales through Cardiff, and journey times to Cardiff are being reduced. Everybody would like a high-speed railway running right to their front door, but as we—[Interruption.] Okay, to the next street. As we progressively modernise our infrastructure with electrification and new train services, the impact will be felt by all locations. Even those locations not directly benefiting from the new, faster services will benefit from the savings in time, and I am sure that the hon. Gentleman’s constituents in west Wales will benefit significantly from today’s announcement.