Welsh Affairs

Debate between Wayne David and Craig Williams

Thursday 3rd March 2022 Commons Chamber

[Wayne David]

I absolutely agree. My hon. Friend has made, and is making, a huge contribution to this debate through his able chairpersonship of the all-party parliamentary group on the shared prosperity fund.

[Craig Williams (Montgomeryshire) (Con)]

The hon. Gentleman is being very generous in giving way, and I will pay a broader tribute to him when I speak.

I do not recognise the hon. Gentleman’s description of issues such as the community renewal fund. We secured 23% of that fund for 165 projects in Wales, which is above and beyond the UK share that we would have got from any European project. Will he reflect on that sharing of the fund and hope that we secure more? When I talk to local authorities, they tell me that they are very welcoming of the schemes and the fact that they engage with them directly rather than through third parties.

[Wayne David]

It is a complicated situation. Initially, we were extremely concerned because, objectively speaking, areas of obvious need were being excluded for no good reason at all. That situation has changed, and I have to say that is because of our strong lobbying. It is very important to recognise that.

If we look across the border, we see that the situation in England is very worrying indeed, because in many cases resources were allocated not on the basis of need, but on the basis of a perverse formula that was concocted to help areas that most of us would agree do not need support. I am concerned about what has happened so far and the implications for the future.

The Government have apparently moved away from a competition mechanism whereby local authorities and others compete against each other. However, given the performance of the community renewal fund, I am worried that we will get another perverse formula that does not recognise what most of us would consider to be objective need. That is what happened with the European funding, but we are concerned that it may not happen with the shared prosperity fund.

My hon. Friend the Member for Aberavon (Stephen Kinnock) touched on my final point about the shared prosperity fund. He said that he was concerned about how it would relate to devolution. It is extremely important that we ensure that different tiers of government—central Government and the Welsh Government—work together. There must be, to repeat the phrase I used earlier, mutual respect between the two institutions. They need to pull together so that resources are used to maximum effect. It worries me greatly that there is, unfortunately, quite a lot of friction between the Welsh Government and central Government. I have to be honest: it seems to me that that is because central Government refuse to co-operate fully with the Welsh Government on economic development. I plead with the Wales Office and central Government to move away from that approach and to recognise that, at the end of the day, our interest is in the wellbeing of the people of Wales. We need to pull together in the interests of all our people, not indulge in petty squabbles and friction, and the onus is on central Government to do that.

It is very important that the Secretary of State issues a clarification today on the shared prosperity fund and sweeps to one side the fog that has descended over the replacement for European funding. We need clarity on what is going to happen in the very near future.

The second issue that I would like to address is the cost of living crisis in Wales. I referred in the Welsh Grand Committee to the Bevan Foundation’s excellent December report, which gave information on poverty in Wales in winter 2021. Two of its conclusions are very worrying. First, it said:

“Households are struggling to make ends meet—Nearly four in ten Welsh households (39 per cent) do not have enough money to buy anything beyond everyday items, up from 33 per cent in May”.

It also concluded that living costs were still rising, stating:

“Households across Wales have seen their living costs increase. More than half have seen the cost of food increase with more than six in ten seeing the cost of their utilities increase.”

As we all know, since that report was written at the end of last year, things have become much more difficult for many families—for all families, in fact—in Wales.

We all know that the fuel crisis is an important part of the general crisis. Unfortunately, the situation in Ukraine and Russia is making it worse—we cannot get away from that fact. I am extremely concerned about how it impacts directly on my constituents. I will give two examples. One constituent recently got in touch with the constituency office in Bedwas, Caerphilly to let us know that she would usually pay £80 a month for her fuel bill but that it has now jumped to £210 a month. That is a 162.5% increase. She told us that she is going to have to choose between heating and eating for her and her child. That is the reality, and that is just one example.

Another constituent said that his combined energy utility bill was £101 a month, but from this March it will increase to £340 a month. That is a huge increase—it is phenomenal. He is a retired gentleman and says that he has a good pension, but even he will find it difficult to make ends meet.

--- Later in debate ---

[Craig Williams (Montgomeryshire) (Con)]

It is a great delight to take part in this debate, and I pay tribute to the hon. Member for Caerphilly (Wayne David) for opening it. I know we all say that there should be a staged item on the parliamentary programme every year, but through the usual channels we seem to have it on an annual basis, so clearly something works, and I hope that that continues long after his retirement. I pay particular tribute to him; his Unionist credentials have never been in doubt and since I have been elected his sage advice and warm words for our United Kingdom have been incredibly welcome. They will be missed on the Labour Benches—although hopefully there are still years to come before then in which he can move the debate.

I echo the words of my right hon. Friend the Member for Clwyd West (Mr Jones) on energy policy and in particular the role of nuclear in Wales. I wish him and other colleagues championing it success—I had better mention my hon. Friend the Member for Ynys Môn (Virginia Crosbie) and her long-haul campaign to deliver nuclear power on Wylfa and Trawsfynydd.

I also echo the points made around the Royal Welsh battle group. We have leaned heavily on our armed forces during covid with military aid in response to civil authorities’ requests, and the strength of the United Kingdom can be seen nowhere better. I know that from my own experience nigh-on two weeks ago, when we called the Welsh Ambulance Service because I was helping a dear lady who had fallen over on Welshpool High Street. Ten minutes later, an ambulance turned up and out jumped a paramedic and a member of our armed forces. It is great to see that support continuing. Clearly it is not sustainable, but that is what our armed forces and the United Kingdom Government are there to do: to provide support where we need it the most.

In this debate more than most, our thoughts are with the armed forces as they forward deploy to support our NATO friends in eastern Europe. The Royal Welsh has done a tremendous job for us in this country during the covid crisis, the floods and other crises; now we lean on it again to ensure the defence of the realm and to support our NATO allies.

I also pay particular tribute, as we have all done this week and in years gone by, to Wales Week. I am sure most Members of the House have been to a Wales Week event this week. Wales Week London—Wales Week world, as it is now—has become a feature of the diary. I pay particular tribute to Dan Langford and Mike Phillips, who are bastions of the championing of Wales, our culture, our heritage and our business and are positive about the opportunities that Wales, the Welsh people and the Welsh business community have. They have brought Governments, communities and businesses together.

I implore the Secretary of State to continue his great work with Wales Week, working with the Foreign Office to ensure that not only is the Welsh flag flying at our embassies around the world every St David’s day, but that business communities and the Department for International Trade are invited and that our businesses are championed at UK level, as they rightly deserve. There were 90 events in London throughout Wales Week—an historic high. I am in no doubt that the whole House will wish Wales Week continued and greater success.

We have heard a bit about the UK shared prosperity fund, and I want to discuss not just the words but the commitments to date surrounding the replacement of European money. I accept the benefit of the doubt given by my hon. Friend—I call him that to reflect St David’s Day—the Member for Caerphilly, and that was kind of him, but this is not just about words. The community renewal fund gives 23% of the UK funding to Wales—way above any Barnettised formula in the past. That is a clear direction of travel. We have secured 7% from the levelling-up fund. Again, that is way above what we would see from a UK Government scheme if we just were just going to honour the commitment.

[Wayne David]

rose—

[Craig Williams]

I fear that this is the last time I call him my hon. Friend; it will be back to hon. Member.

[Wayne David]

If it is indeed the direction of travel that the Government should be generous to Wales, why on earth do they not come forward with some hard figures to prove that assertion?

[Craig Williams]

The hon. Member makes an interesting point given that I have just given him two hard figures. The latest schemes coming out of the United Kingdom Government show that this is not about words, but action—actual funding leaving the Treasury and the levelling-up unit and going into Wales. We have 23% from the community renewal fund going straight into schemes across Wales and 7% from the levelling-up fund—way above any Barnettised formula. The figures are there, so he need not ask for them. Now we need to work together.

The hon. Member for Aberavon (Stephen Kinnock), who is not in his place, talked about an attack on devolution. With the objective 1 funding, we qualified once, we qualified twice, and we continued to qualify. That was not a great thing to continue doing, as countries in eastern Europe managed to use the funding programmes organised by the European Union to grow their GVA and so no longer qualify because their prosperity, skills and poverty indicators were all going the right way. In Wales, we are still under the Welsh European Funding Office. This is not just a political assertion from the Conservative Benches. The Audit Wales, Committees of this House and the European Union itself wanted to know time and again why the European funds that were going to Wales were not getting any better outcomes than countries in eastern Europe—the outcomes that our constituents wanted. I remember during the referendum, when we were on the same page, wondering why the response was so bad in the south Wales valleys.

Welsh Affairs

Debate between Wayne David and Craig Williams

Thursday 3rd March 2016 Commons Chamber

[Wayne David]

My hon. Friend is too modest to say this, but it is worth pointing out that he was the author of that book. I disagreed with some things in it, but it did have many words of wisdom.

My central point is that those of us who believe in devolution need to recognise that there needs to be a high degree of consensus, dialogue and debate among all politicians involved in the process, both here and in Cardiff Bay. I really hope that when the Government start from scratch, they will have learned the cardinal lesson that they have to consult—genuinely and openly, and on a cross-party basis—opinion here in Westminster. I think that all our colleagues are prepared to contribute.

It is also important that the Government work with the Welsh Assembly. It is very important that we have that dialogue with Cardiff Bay, because, to be frank, it is unthinkable that a Westminster Government could decide a devolution package that is not acceptable to the body to which power is being devolved. If they had proceeded with the draft Bill, we might have been in that situation, ridiculous though it seems. I ask the Government for dialogue not only here, but with our colleagues and friends back in the Welsh Assembly.

My second point is about the European Union. In my view, there is an overwhelmingly strong case for the United Kingdom to remain a full member of the European Union, but that case is particularly strong for us in Wales. There can be no doubt whatsoever that the European Union is vital for jobs, exports and, therefore, prosperity in Wales.

Last week the Prime Minister visited the General Electric aircraft engine maintenance plant in Nantgarw, just outside my constituency. He made his case for why Britain should remain in the EU and why it benefits south Wales and General Electric. Objectively, he had a strong case to make, because General Electric is one of my constituency’s most important employers; many of the workers travel down Nantgarw hill to work there. It recognises how important it is to have a good relationship with the EU and to be an integral part of the single European market. I have no ideological axe to grind; empirically, we recognise that it is good for our economy to be firmly linked to our partners in the rest of Europe. It is as simple and straightforward as that. It is a bread and butter issue.

On Monday night, I met representatives from DS Smith Recycling Ltd, which is a British company with a strong European presence. It is expanding its operations in an innovative way throughout the European Union, and it is a major and important employer in my constituency of Caerphilly. The company is not committed to the left or to the right; it simply wants to expand its work and be a good employer. It recognises that it would be absolute lunacy for itself and the people it employs if we extricated ourselves from the European Union. The message that went out on Monday evening was, “In the interests of the company, jobs and prosperity, please make sure that the strong case is put for Britain to remain in the European Union.”

The two companies I have mentioned have innovative and well-structured training programmes, which the EU’s structural funds contribute to in large part. Wales has been allocated £2.4 billion from the EU structural funds for the 2014 to 2020 period. Indeed, Wales is a net beneficiary—more money comes in than goes out—to the tune of £838 million a year. There are strong practical reasons for making the case over the next few weeks that Britain and Wales should remain an integral part of the European Union. It makes sense for ordinary people and for the country’s prosperity, to which we are all committed.

My final point is also linked to the prosperity of Wales, namely the question of whether Heathrow should be expanded and have a third runway. As a Welsh MP, I believe that the strongest single argument in favour of the third runway at Heathrow is the positive impact it would have on the Welsh economy. That is not just my view. The First Minister of Wales, Carwyn Jones, was clear the other day that the Welsh Government support the expansion of Heathrow because it would provide the best possible support for investment, tourism and jobs in Wales. His comments are informed by hard facts and clear analysis. It has been estimated that 85% of the new manufacturing jobs that an expanded Heathrow would generate would be created outside London and the south-east. Up to 6,000 of those manufacturing jobs would be in Wales, constituting a significant part of the 8,400 Welsh jobs accompanying a total of £6.2 billion of economic benefit.

Those facts speak for themselves. It is essential that the Government stop shilly-shallying and give the go-ahead for the expansion of Heathrow. It makes sense for the country as a whole and for Wales in particular.

Whether or not Heathrow will bring the best possible benefits to Wales depends on access. That is why it is essential that Heathrow’s expansion is accompanied by the electrification of the Paddington to south Wales railway line and the construction of a rail spur directly to Heathrow. I am aware that a consultation began this week.

[Craig Williams]

On the subject of Governments dilly-dallying, if we are going to have a third runway at Heathrow—which I support wholeheartedly—would it not make sense for the Welsh Labour Government to get on with the M4 relief road and improve the tunnels and the capacity of the M4 so that we can get to the airport?

[Wayne David]

I am in favour of that, but the decision is not up to the Government in Cardiff alone. A lot depends on what the Government in London do and on whether financial facilities are made available to the Welsh Government. That is important.

It is vital that a message goes out from the consultation that Network Rail is commencing that the Governments in Cardiff and in London are in favour of the spur to Heathrow. When the Minister replies, I would like him to say that strong representations will be made to Network Rail to make sure that we get the spur. We hope that that will be part of a longer-term project for the expansion of Heathrow airport.

I have spoken about three important issues. We want a coherent draft Wales Bill to be presented, and I hope that it will be formulated on the basis of consensus. I hope that in the next few months many Members in this Chamber will decide to pull together and argue the case for Britain’s continued membership of the European Union, highlighting its importance for Wales. I also hope that we will be able to unite in support of an expanded Heathrow airport. That, again, would be of tremendous benefit to the Welsh economy.