Oral Answers to Questions
Wayne David Excerpts(5 years, 3 months ago)
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Wayne David (Caerphilly) (Lab)
Bambos Charalambous (Enfield, Southgate) (Lab)
The Secretary of State for Wales (Alun Cairns)
The best outcome for Wales and the Welsh economy is that the UK leaves the European Union in an orderly manner with a deal. We will continue to work with energy and determination to make sure that that happens. However, the UK will be leaving the European Union on 31 October.
Wayne David
Given that 90% of Welsh lamb is exported to other countries in the European Union, does the Secretary of State still believe that, in the event of a no-deal Brexit, a viable alternative market will be Japan?
Alun Cairns
The hon. Gentleman makes a good point. I met the Farmers Union of Wales yesterday, and I will be meeting NFU Cymru quite soon. The Japanese market is a new market that opened in January. It is wholly separate from the free trade agreement that the European Union has with Japan, so there has been lots of misreporting that the hon. Gentleman fails to recognise and understand. However, his constituency voted to leave the European Union—why is he trying to stop the process?
Oral Answers to Questions
Wayne David Excerpts(5 years, 5 months ago)
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Chris Bryant (Rhondda) (Lab)
Wayne David (Caerphilly) (Lab)
The Parliamentary Under-Secretary of State for Wales (Kevin Foster)
We have regular discussions with the Welsh Government’s Minister for Economy and Transport on a range of matters, including infrastructure in Wales. We are committed to ensuring that Wales prospers on the back of a strong and resilient infrastructure base, supported through our modern industrial strategy and national infrastructure delivery plan.
Kevin Foster
I recognise the strength with which the hon. Gentleman has put forward his constituents’ case. Roads and highways are obviously in the devolved space, but I would certainly be more than happy to meet him to discuss what we can do to support his cause.
Wayne David
The European regional development fund has made a huge contribution to the development of infrastructure in Wales. Will the Minister give a commitment that resources from the new shared prosperity fund will be allocated on the basis of need and not through competition?
Kevin Foster
We will decide on the future of the UK shared prosperity fund, which I touched on earlier, through consultation and through the comprehensive spending review later this year. What would make a huge difference to roads in south Wales would be getting the M4 relief road back on track. If that was our decision, Wales would now be on the highway to the future; sadly, as it is a devolved one, it is now on the road to nowhere.
Oral Answers to Questions
Wayne David Excerpts(5 years, 6 months ago)
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The Prime Minister
This is an important issue. We are concerned about the potential effects of these proposals—particularly, obviously, given the large number of British citizens in Hong Kong. It is vital that the extradition arrangements in Hong Kong are in line with the rights and freedoms that were set down in the Sino-British joint declaration. We have been unequivocal in our views. We have been very clear, from the outset, in engaging with the Hong Kong Government and with the members of the Hong Kong Legislative Council and Executive Council—at all levels—about our view on this issue. As I say, it is vital that those extradition arrangements are in line with the rights and freedoms that were set down in the Sino-British joint declaration.
Wayne David (Caerphilly) (Lab)
The Prime Minister
What I think is fair is what this Government are doing: under this Government, we have seen the top 1% paying more in income tax than they ever did under a Labour Government. What is more, we have been delivering tax cuts, with over 3 million people taken out of paying income tax altogether and over 30 million people with a tax cut. That is what is fair: more money in people’s pockets. That is what we, as Conservatives, have done for people.
Wales: Regional Development Funding
Wayne David Excerpts(5 years, 7 months ago)
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Stephen Kinnock
Indeed. That is a quite shocking example of the failure to prioritise what is happening right on our doorstep. It is absolutely vital that we see the funding in Wales that we need if we are to deliver. We all know how much support is required to deal with the huge changes in our economy over recent decades. We currently have a system that, while not perfect, works relatively well: EU funding is targeted at less prosperous areas and delivered by devolved Administrations who know the needs of their areas better than anyone else.
Now, we can debate Brexit until the cows come home—I am sure that we would love to—but I am sure that we can all agree that it is crucial that Wales does not lose a single penny of the funding that we would have received had the British public voted to remain instead of to leave the EU on 23 June 2016. The UK Government have agreed to replace those European funds, yet nearly everything about the shared prosperity fund is still to be worked out. We still do not know how much funding will be available. We need £1.7 billion per year UK-wide to keep up with what the EU is set to contribute from 2020 to 2026.
Wayne David (Caerphilly) (Lab)
There is an active debate ongoing about how the shared prosperity fund ought to be allocated. Some strongly argue that there should be a huge competitive element. Does my hon. Friend agree that it is far better to have a needs-based formula, so that resources are allocated where they are desired, not according to which area can put forward the best bids?
Stephen Kinnock
I agree entirely. There are two key points. First, the big advantage of the current system is that it is depoliticised. The European Union works on the basis of data and facts and of a scientific analysis of what is required. There is a huge risk that the shared prosperity fund will be turned into pork barrel politics, where the fund gets used as a slush fund for, dare I say it, a Conservative Government in Westminster. Secondly, competitive bidding does not work. The shared prosperity fund needs to be embedded in an industrial strategy and a regional development strategy that works from a strategic point of view rather than being based on bidding.
The second key question is how this money will be divided across the country. The third question is what activities will be eligible for support. The fourth question is who will take the decisions on how the money is spent. We are still none the wiser on all those key questions.
It really is not just about the money. There is a real fear that this will be not just a financial grab, but a power grab: the Westminster Government will use this opportunity to reduce funding for areas that need it most and claw back powers that sit naturally with the devolved Administrations.
Hywel Williams (Arfon) (PC)
I congratulate the hon. Member for Aberavon (Stephen Kinnock) on securing the debate, and I welcome the Under-Secretary of State for Wales, the hon. Member for Torbay (Kevin Foster), to his place—I hope that he will add some much-required substance to the Wales Office team.
Three years ago, Vote Leave campaigners promised that Wales would lose not a penny if we voted to leave the EU. If we leave the EU, Plaid Cymru is determined to ensure that they fulfil their promise. I will briefly outline the principles of Plaid Cymru’s model for regional development funding. It would be a substantial new step in reducing regional inequalities across the UK; I think that Wales could take a lead in this regard.
Although the EU has the makings of a proper regional development policy, in the UK, by default, the regional policy is to favour London and the south-east of England. Wales currently receives £245 million more a year from the EU than it pays in. That we qualify for so much money reflects our poverty, which is on a par with areas in former USSR satellite states. It also reflects the extreme centralisation, the policy vacuum and the chronic underfunding by the UK Government. The worst inequality in any EU member state is indeed that between London and Wales, and leaving the EU will make the situation worse, unless the Government act.
Two years ago, Westminster committed to creating a UK shared prosperity fund that was
“specifically designed to reduce inequalities between communities across our four nations.”
We are on the cusp of exiting the EU, so where is it? Wales will not forgive a Westminster Government that cannot, or perhaps will not, plan for the funding on which so many of our communities are forced to depend. However, decisions on future funding must be timely. We cannot have a Government-caused funding gap disrupting the proper transition in the delivery of projects on the ground.
Replacing European structural funds with a well-funded UK SPF could be genuinely transformational for Wales and for the rest of the UK, but we need timely planning and proper funding to enable Welsh solutions for Welsh problems. Funding must be managed in Wales and be pre-allocated. A cut-throat bidding process would pit Wales against other regions and nations in a race to the bottom. Also, funding must be multi-annual. I think that all hon. Members here today will know of project managers who have so often been disempowered by self-defeating short-term funding cycles.
Finally, Welsh programmes should continue to meet the goals of European structural funds, with streams for employability and economic development, with any funding being co-ordinated with Welsh Government policy and spending, as well as meeting sustainability legislation, such as the very welcome Well-being of Future Generations (Wales) Act 2015.
Wayne David
Does the hon. Gentleman agree that, as far as Wales is concerned, it is important that any allocations are made outside of the Barnett formula?
Hywel Williams
Indeed, that is a crucial point, and one that I have taken up with Government Ministers. In my case—in north Wales and in much of rural Wales— that point is particularly crucial for farming. If we pit marginal farming on the uplands of Wales against the grain barons of East Anglia, we all know what will happen. The hon. Gentleman makes a crucial point.
Funding for Wales should meet the goals of the European structural funds. I also mentioned the Well-being of Future Generations (Wales) Act 2015, which is crucial in this regard. Decades of under-investment by the Welsh and UK Governments have led to chronic and disgraceful child poverty, as outlined in the Assembly this afternoon by my colleague Rhun ap Iorwerth, and to families having to choose between heating and eating. Leaving the EU will harm our communities further, unless the Government act properly.
The UK shared prosperity fund must deliver for Wales. Otherwise, ever more of our citizens will conclude—rightly, I believe—that we would be better out and in: out of the UK and back in the EU.
Kevin Foster
I thank the hon. Gentleman for his intervention. Our clear emphasis will be on ensuring that it works for local communities and delivers prosperity and growth across the nation. The consultation will set out our plans, and I am sure that he and other Members will be powerful advocates in ensuring that the fund works for their communities in the way they envisage.
I am conscious that many Members have raised the future of EU funding. In 2016, the Government guaranteed funding for UK organisations in receipt of EU funds where projects are agreed before the day the UK leaves the European Union. In July, the Government announced an extension to that guarantee, which will underwrite the UK’s allocation for structural and investment fund projects under this EU budget period to 2020 in the event of the UK leaving without a withdrawal agreement. That ensures that UK organisations, such as charities, businesses and universities, will continue to receive funding over a project’s lifetime if they successfully bid into EU-funded programmes before December 2020.
Our overall message is therefore business as usual. We want all places to continue to sign contracts while we still belong to these funds.
Kevin Foster
Not for the moment.
The December 2017 withdrawal agreement means that Wales will receive its full 2014 to 2020 allocation, because we recognise the importance of short-term certainty on funding. As we transition to longer term arrangements, we will of course ensure that all parts of the UK are treated fairly and that their circumstances are taken into account. We have promised, as I have already touched on, to engage the devolved Administrations as we develop the UK shared prosperity fund.
Kevin Foster
Given the time, I need to make progress.
I fully recognise the importance of EU funds to Wales. The guarantees set out by the UK Government show the importance that we place on those funds, as does the position that we have since reached with the EU on participating in the 2014 to 2020 EU programmes until closure. Under the terms of the withdrawal agreement, UK entities ripe to participate in EU programmes such as Horizon 2020 and Erasmus+ during the current multi-annual financial framework period will be unaffected by the UK’s withdrawal from the EU for the lifetime of the projects financed by the current multi-annual financial framework. UK-based organisations and people will be able to bid for funding and participate in and lead consortia in 2019 and 2020.
In terms of our future participation, the joint political declaration published in November sets out a basis for co-operation in European Union programmes, subject to the conditions set out in the corresponding Union instruments, such as in science and innovation, culture and education, development and defence capabilities, civil protection and space. Of course, the UK would make financial contributions were we to participate in any EU programmes.
On the specific point made about Barnettisation and potential agricultural funding, direct payments will continue to be made on the same basis in 2019 and 2020. The Government have already confirmed that overall funding for UK farm support will be protected in cash terms until the end of the Parliament in 2022, providing more certainty than any other EU member state. Crucially, the Government are clear that they will not simply apply the Barnett formula to changes in DEFRA funding beyond this Parliament. That means that farmers in Wales, Scotland and Northern Ireland will not just be allocated funding according to the population size of each nation, which in each case is significantly smaller than that of England.
In the beginning, EU funding was seen as something of a panacea for all Wales’s ills and as an opportunity that needed to be grasped with both hands. However, we should question whether, given the way that money was spent, it has reached those communities. We can all think of examples of projects that did not succeed, such as Techniums, the Ebbw Vale funicular railway and the All Wales Ethnic Minority Association.
I hear the passion with which many Members representing their communities have articulated what they see as the benefits of EU funding. However, we need to contrast that with the fact that some of the areas involved returned some of the highest leave votes. That was not based on whether a consultation was going to take place, but on what people perceived in their areas. It is a challenge for us as politicians to ensure that people see the benefit of what is done in their area.
As I set out at the beginning of my speech, the UK’s exit from the EU provides us with a considerable opportunity to reconsider how we invest our money in a way that helps to reduce inequality across our four nations. The current system is bureaucratic, inefficient and difficult to access. With the UK shared prosperity fund, we would have the opportunity to design a fund that works in the interests of Wales and the UK as a whole. I am clear that we will do that while respecting the devolution settlements and continuing to engage with the devolved Administrations, as we have successfully and productively done and continue to do on growth deals, and as I have done personally since my appointment, in the shared interests of those we serve.
Ultimately, the Government want to see an economically strong Wales, within a prosperous and strengthening United Kingdom. Working alongside the Welsh Government, through a future shared prosperity fund and other initiatives such as the growth deal, we can ensure that that becomes a reality.
Oral Answers to Questions
Wayne David Excerpts(5 years, 8 months ago)
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The Prime Minister
I thank my hon. Friend for raising that issue. I am very happy to congratulate Ruth Cairnie on achieving that role as chairman of Babcock. The Government have been working and have done a lot since 2010 to see more women on the boards of companies, as that is very important. The greater the diversity we have on those boards, the better those companies will do.
Wayne David (Caerphilly) (Lab)
The Prime Minister
We have been protecting police funding since 2015. This financial year, nearly £1 billion extra is available to police, and we have indeed put extra money into police. My right hon. Friend the Home Secretary announced the £100 million extra that is going into key areas in relation to dealing with knife crime, and we have been protecting police funding since 2015.
Exiting the European Union
Wayne David Excerpts(5 years, 9 months ago)
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Mr Lidington
I am advised that that is either being published as we speak or will be published imminently.
Wayne David (Caerphilly) (Lab)
Further to the question asked by my hon. Friend the Member for Cardiff West (Kevin Brennan), the Government are clearly reluctant for the Attorney General to come before the House. Is that because the rumours are correct that he has strong reservations about tonight’s agreements?
Leaving the European Union
Wayne David Excerpts(5 years, 11 months ago)
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The Prime Minister
I am happy to give my hon. Friend that assurance. I have always said that I believe that the desire to bring an end to free movement was one of the things that led to many people voting to leave the European Union. This Government will deliver on that—there will be an end to free movement.
Wayne David (Caerphilly) (Lab)
In a radio interview yesterday, the Solicitor General said that he thought that agreement on a customs union would provide a way to unify this House. What is the Prime Minister’s response to her Solicitor General?
The Prime Minister
My response is that the discussions we have been having across the House suggest that opinions on this matter and on what to drive forward are more varied than a simple solution such as the one that the hon. Gentleman suggests.
European Council
Wayne David Excerpts(6 years ago)
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The Prime Minister
The only way to rule out no deal is to ensure that there is a deal that enables us to leave the European Union.
Wayne David (Caerphilly) (Lab)
The Prime Minister has used a mantra ad nauseam: it is her deal or no deal—she almost repeated it again just then—but she must be aware that The Economist magazine, among many, many others, has said that a no-deal Brexit would wreck the economy. Why is she prepared to wreck the economy and can she justify that to the British people?
The Prime Minister
I believe that the best route forward for the United Kingdom is to leave the European Union with a good deal, and I believe that this is a good deal.
European Union (Withdrawal) Act
Wayne David Excerpts(6 years ago)
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Jeremy Corbyn
I was coming to that in my speech, but my hon. Friend is absolutely right: young people need that right to travel and study. The Erasmus scheme has worked very well, giving a lot of people opportunities to study. I will come back to that issue. I just think we should reflect on the massive work done by European Union nationals who have come to make their homes in this country and helped us to develop our health service and many other services.
The backstop would apply separate regulatory rules to Northern Ireland, despite the fact that the Prime Minister said that this is something that
“no UK Prime Minister could ever agree to”.—[Official Report, 28 February 2018; Vol. 636, c. 823.]
That is another of her red lines breached. In fact, the list of the EU measures that continue to apply to Northern Ireland runs to 75 pages of the agreement.
Wayne David (Caerphilly) (Lab)
Does my right hon. Friend agree that this is bad deal, and that one of the reasons for that is that the Prime Minister has spent much of the past two and a half years discussing the deal with her colleagues in the Conservative party rather than negotiating with the European Union?
Jeremy Corbyn
My hon. Friend is so right. This has been a negotiation with the Cabinet, with Conservative MPs and within the Conservative party. That is where all the concentration has been. Indeed, one of the Brexit Secretaries hardly ever went to Brussels anyway, presumably being more interested in arguments within the Conservative party.
It is also clear that the Prime Minister’s red line regarding the jurisdiction of the European Court of Justice has been torn up. Under the Prime Minister’s plan, by 2022 we will either be in a backstop or still in transition, where we will continue to contribute to the European Union budget and follow the rules overseen by the European Court of Justice. Indeed, the Foreign Secretary said on 25 November that the deal only “largely” ends the jurisdiction of the ECJ. It is crystal clear that the Prime Minister’s claim that this plan means that we take control over our laws, money and borders is utterly far-fetched.
On the future partnership, let us be clear: there is not a deal; there is a framework for a future partnership. Our trading relationship with Europe is still to be negotiated, and it will take years to do that. We still do not know what our long-term relationship with Europe would look like. That is why so many MPs across Parliament are not willing to vote for this blindfold Brexit and take a leap in the dark about Britain’s future. There is no mention of the Prime Minister’s favoured term, “implementation period”, anywhere in the 600 pages of the withdrawal agreement—and no wonder, as there is precious little new to implement spelled out either in the agreement or in the future partnership. The agreement does call for a transition period, but there is nothing to transition to. It is a bridge to nowhere. As the 26-page document says, it
“can lead to a spectrum of different outcomes…as well as checks and controls”—
and we are expected to endorse that as a basis of our future relationship with the European Union. After two years of negotiations, all the Government have really agreed to is a very vague wish list. Only three of its 26 pages deal with trade. It is not a trade deal; it is not even close to a trade deal. The trade deal recently signed between the EU and Canada took seven years to negotiate and ran to 1,600 pages. In two and a half years, this Government have agreed to three pages of text on trade. It is hardly an encouraging start to our future trade relationships.
The former Brexit Secretary committed to a “detailed”, “precise” and “substantive” document. We had the right to expect one. What we got contains no mention of frictionless trade, promised at Chequers, or even trade “as frictionless as possible”, promised before that. There is no ambition to negotiate a new comprehensive customs union with a British say that would protect jobs, trade and industry—and so uncertainty continues for business.
Progress on EU Negotiations
Wayne David Excerpts(6 years, 1 month ago)
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The Prime Minister
I am very happy to give my hon. Friend that absolute commitment. Indeed, it is the United Kingdom within the European Union that has been arguing against the creation of a European army. We are very clear that the bedrock of defence for Europe is NATO. There may be ways in which the European Union can act on the defence field that complements NATO, but there is no question of any British personnel joining the European army.
Wayne David (Caerphilly) (Lab)
Earlier this afternoon, the Prime Minister admitted to this House that she had failed to negotiate Britain’s continued involvement in the Galileo satellite project. Will she tell the House how much it will cost this country to develop an alternative because of her failure?
The Prime Minister
In any negotiation, there are two sides. There were reasons why the European Union did not want the United Kingdom to be part of Galileo on the basis on which we felt that it was right for us to participate. At that point, a decision has to be taken. I suggest to the hon. Gentleman that the real failure would have been to say that we would remain in Galileo on a basis that did not permit us to have guarantees in relation to our security. It is better for us to say that we would do it ourselves and ensure that security.