Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 13th April 2016 Commons Chamber

[Julian Sturdy (York Outer) (Con)]

1. What assessment he has made of the effectiveness of steps taken to rebalance the economy in Wales.

[The Secretary of State for Wales (Alun Cairns)]

As the economy continues to grow, this one nation Government are ambitious for every part of the UK. In Wales, we are regenerating the south-east with a city deal for the Cardiff capital region. We intend to follow suit with a deal for Swansea in the west, and we have opened the door to a growth deal for north Wales.

[Julian Sturdy]

May I be the first to welcome the Secretary of State and the Minister to their new roles?

Following the announcement of the north Wales growth deal in the Budget, what plans are there for the deal to be genuinely cross-border and to plug into the northern powerhouse, which has the potential to deliver huge benefits throughout the north, not only for the distinct regions like north Wales but for God’s own county of Yorkshire?

[Alun Cairns]

As well as seeking to grow the economy across the United Kingdom, all the way to Yorkshire and beyond, we are seeking to move our dependency in Wales from the south-eastern part of the country. Less than two weeks ago, I was in north Wales talking to local authority leaders, businesses and business groups, all of whom were keen to support the north Wales growth deal. It was interesting to note that they called for the deal to take place on a cross-border basis, extending to Cheshire and the Wirral, to ensure that north Wales was plugged into the northern powerhouse.

[Mr David Hanson (Delyn) (Lab)]

Given the importance of north Wales, will the Secretary of State press very hard for the establishment of links to Manchester airport and rail links to enable people to benefit from HS2, and would I, as a north Wales MP, be able to vote on such measures?

[Alun Cairns]

As the right hon. Gentleman knows, the new cross-border taskforce is making a bid for control period 6 funding from the Department for Transport with the aim of improving links with north Wales. Franchise negotiations are taking place between the Welsh and United Kingdom Governments, and we are determined to ensure that Members are represented properly in those negotiations.

[Mr David Jones (Clwyd West) (Con)]

I, too, welcome my right hon. Friend to his position. As he said, the Budget contained excellent news for north Wales in the form of the growth deal announcement, which recognises the region’s close association with the north-west of England, but does he agree that maximising the benefit will require at least an element of political devolution to north Wales?

[Alun Cairns]

My right hon. Friend speaks with authority and knowledge of this issue. Devolution to north Wales from what is seen in many quarters as the remoteness of Cardiff Bay is essential. The community groups whom I met in north Wales, whether they were from the north-west, from the border or from the English side of the boundary, wanted the growth deal to work on a cross-border basis, and I am determined to explore that possibility in the interests of the region.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

One of the most effective ways of rebalancing the economy is to empower the Welsh Government by giving them the necessary job creation levers, which is why I welcome moves to increase fiscal empowerment for Wales. If fiscal devolution is to work, however, it must be facilitated by the provision of a genuinely no-detriment fiscal framework. The SNP Scottish Government have negotiated such a framework for their country. What is the Secretary of State’s preferred deduction method for Wales?

[Alun Cairns]

The hon. Gentleman will be aware of the plans in the draft Wales Bill for the granting of income tax-varying powers for the Welsh Government. We want Wales to be a low-tax economy. Of course, mechanisms will need to be introduced to protect Welsh interests. The hon. Gentleman will be pleased to hear that I met the Chief Secretary to the Treasury earlier this week to discuss early proposals for such mechanisms, and we are happy to engage in further such discussions.

[Mr Philip Hollobone (Kettering) (Con)]

Which sectors of the Welsh economy offer the most exciting prospects for growth to help to rebalance the economy, and what steps is my right hon. Friend taking to encourage them?

[Alun Cairns]

As my hon. Friend will know, the Budget focused on the city deal for Cardiff, which is the largest city deal in the United Kingdom, with £1.2 billion covering 10 local authority areas. However, we also have ambitions for the Swansea bay city deal and the north Wales growth deal. We need to remember that this involves UK taxpayers’ money in addition to the Barnett block, which is something that we never saw when Labour was in power.

[Albert Owen (Ynys Môn) (Lab)]

North Wales growth is interdependent on growth in the Republic of Ireland as well as in England. Will the Secretary of State—and I welcome both him and the Under-Secretary of State to their new positions—ensure that north Wales Labour Members are provided with some details of the so-called partnership, given that we are the partners from north Wales?

[Alun Cairns]

I am grateful to the hon. Gentleman for his kind words and support.

We are determined to work on that issue. There has been a bottom-up approach on the growth deal. We have met local authority leaders and businesses from north Wales, and we are determined to pursue that further. I am not sure that I can make the growth deal stretch as far as Northern Ireland and the Republic Ireland, but I would be interested to try to take it across the English border.

[Simon Hoare (North Dorset) (Con)]

2. What assessment he has made of the potential effect on people in Wales of the Government’s decision to reduce tolls on the Severn crossings.

[The Secretary of State for Wales (Alun Cairns)]

This Government’s commitment to halve the Severn crossings toll is a major boost for the economy and people of south Wales. It will make a positive difference to commuters and small business owners and demonstrates our continued determination to rebalance the economy.

[Simon Hoare]

I am grateful to my right hon. Friend for that reply. I also welcome him to his place. It seems only a moment or so ago that we were competing to be the parliamentary candidate for the then safe Labour seat of Gower, which was some years ago.

Does my right hon. Friend agree that the reduction in the tolls will also hugely benefit the Welsh tourism sector by encouraging people to come to Wales, and that it is time for the Welsh Government to pull their finger out and deliver the investment and improvements to the M4 corridor?

[Alun Cairns]

I am grateful to my hon. Friend for his kind words. It is fair to say that there are no infrastructure projects more important to the south Wales economy than the upgrade of the M4 around Newport. It is hard to believe that our noble Friend Lord Hague was Secretary of State for Wales when a commitment to that was first made, only for it to be cancelled twice by the Labour party when it was in government. Business has called for it; commuters have called for it; visitors have called for it. The Chancellor made money available specifically for this project almost three years ago. We just wish the Welsh Government would get on with it.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Select Committee on Welsh Affairs found that the operational and maintenance costs of the bridge represented a quarter of the toll, yet, as the bridge goes into public hands, the Government have reduced the toll by half and are therefore creating a 100% margin. When will they reduce the toll to the level of the operational and maintenance costs to give south Wales and the Welsh economy every chance of performing as well as anywhere else, rather than having this stranglehold on it?

[Alun Cairns]

I would have hoped that the hon. Gentleman, like business groups, be it the Federation of Small Businesses, the chambers of commerce or the Institute of Directors, would welcome the halving of the tolls. We saw no action in that regard from the Labour party when it was in government. However, we have gone further than just halving the Severn tolls. A small goods vehicle, for example, will move from the current rate of £13.20 to less than £4 when the tolls are halved, because we are also removing the second-class toll.

[David T. C. Davies (Monmouth) (Con)]

13. The announcement by this Conservative Government of the cut in tolls is hugely welcome. Does my right hon. Friend agree, however, that in the longer term the revenue generated from the tolls should not exceed the cost of maintaining the two Severn bridges?

[Alun Cairns]

I pay tribute to my hon. Friend for his diligent and persistent campaigning on the issue. I know that he was absolutely delighted when the Chancellor was able to respond to his and many other Conservative colleagues’ requests. Of course, a debt will remain on the tolls even when the bridges come back into public ownership in 2018 or thereabouts. That debt will still need to be serviced, as will the innovations on free-flowing traffic that we want to introduce.

[Nia Griffith (Llanelli) (Lab)]

I congratulate the Secretary of State and the Minister on their recent appointments. Labour Members look forward to working constructively with them, particularly on the new Wales Bill, whenever that may appear.

To clarify, in last month’s Budget the Chancellor made much of halving the tolls on the Severn crossings, but as we have since discovered that is not quite the bargain it appears to be. The 50% discount includes the 20% of VAT, which disappears anyway when the bridge reverts to public ownership, and of course businesses reclaim VAT. So instead of leaving businesses still paying thousands of pounds a year, why will not the Government do the right thing and scrap these tolls altogether?

[Alun Cairns]

We have an election coming and the call from the Labour party is now very different—it is very convenient. It has long called for the devolution of the tolls, but we were fearful that, as soon as the tolls were devolved, they would be used as a cash cow to support the income of the Welsh Government.

[Mark Pawsey (Rugby) (Con)]

3. What recent assessment he has made of employment trends in Wales.

--- Later in debate ---

[Tom Pursglove (Corby) (Con)]

4. What assessment he has made of risks to the future of the steel industry in Wales.

[The Secretary of State for Wales (Alun Cairns)]

The steel industry is currently dealing with unparalleled global economic conditions and the UK is deeply concerned by the social and economic impact that they are having in south Wales. While we cannot change the status of the global steel market, our objective remains to overcome the challenges and play a positive role in achieving a sustainable future for the steel industry in Wales and across the UK.

[Tom Pursglove]

I thank the Minister for that answer. Does he agree that in order to secure the future not only of the Port Talbot site but of Tata sites around the UK, no option should be ruled out?

[Alun Cairns]

I pay tribute to my hon. Friend for the way in which he has represented the interests of his constituents and of those who depend on steelmaking in his area. He recognises the way in which the plants are interlinked and he has been working closely with the Business Secretary and me to help to support a secure future. I can reassure him that no stone will be left unturned to secure a long-term future for the Corby plant as well as for every other plant across the UK.

[Hywel Williams (Arfon) (PC)]

I welcome the Secretary of State and his deputy to their new positions and assure you, Sir, that I will endeavour to give them ample opportunity to explain themselves after my questions. Why did the Secretary of State not travel to Mumbai for the Tata board meeting of 29 March?

[Alun Cairns]

The Government have been in close dialogue with Tata steel for many months. My right hon. Friend the Business Secretary was at Tata the month before the Mumbai meeting and had engaged with its directors well before that. I am sure that the hon. Gentleman will be grateful that as a result of the Government’s actions we managed to avert the immediate closure of the plant and propose a sale.

[Hywel Williams]

I will give the Secretary of State another go. Did he fail to attend the meeting because a more senior Cabinet colleague told him not to do so? Did he decide not to go off his own bat? Or was it more down to the fact that, as the Minister for Small Business, Industry and Enterprise said of her boss the Business Secretary to the Select Committee on Welsh Affairs yesterday,

“He would not have gone to Australia had he known that they were going to close the ruddy works”?

What stopped our Secretary of State? Was it the Cabinet’s pecking order, was it indolence, or was it just plain ignorance?

[Alun Cairns]

I am disappointed with the hon. Gentleman’s approach. Steelworkers want to see Government and Opposition, and the unions and the company, work together to secure a long-term future. The Government have been in a long-term dialogue, which is demonstrated by the ongoing sales process, as opposed to the plant facing the risk of immediate closure.

[Byron Davies (Gower) (Con)]

Will my right hon. Friend assure me that he and the Wales Office will work with all relevant Government Departments to ensure the long-term future of Port Talbot, particularly for the workers who live in my constituency?

[Alun Cairns]

I pay tribute to my hon. Friend. He met the Business Secretary last week, and he and I have had several conversations about support for his constituents who depend on the plant, demonstrating its regional impact. The Government are determined to do everything possible to secure a long-term, viable future for the plant.

[Nia Griffith (Llanelli) (Lab)]

As the Secretary of State well knows, at sites across Wales, such as Shotton, Llanwern, Orb, Trostre and Port Talbot, Tata steelworkers produce a whole range of specialist products. What assurances has he obtained from Tata that it will not siphon off the production of the most profitable lines to their plants aboard? What guarantees has he received that the intellectual property will remain with the Welsh operations in order to attract a suitable buyer and safeguard thousands of Welsh jobs?

[Alun Cairns]

The hon. Lady makes an important point about the sale of the operations in the United Kingdom, which demonstrates the positive engagement between the UK Government and Tata Steel that has resulted in its decision to sell off all its operations, rather than simply to dispose of what some might see as the more profitable assets.

[Stephen Kinnock (Aberavon) (Lab)]

5. What steps the Government are taking to support the steel industry in Wales.

[The Secretary of State for Wales (Alun Cairns)]

We have been in extensive discussions with Tata for months, and it is due to Government intervention that Tata has agreed to a sales process rather than an immediate closure of its operations in Wales. I spoke to the hon. Gentleman before he went to the Tata meeting in Mumbai and have spoken to him since. I am keen to stay in regular contact in order to update him as the position changes. [Interruption.]

[Mr Speaker]

Order. These are important matters affecting the livelihoods of tens of thousands of people in Wales and across the country. Let us have some respect for that fact without Ministers wittering away— Mr Evennett—in the background. Important matters are being discussed. Be quiet, sir!

[Stephen Kinnock]

The Secretary of State will know that retaining the order book and customer base is critical for the Welsh steel industry. I want a short answer to a short question. Will the Secretary of State confirm whether he has had conversations with customers such as Honda, Nissan and Jaguar Land Rover to secure the integrity of the customer base? Yes or no.

[Alun Cairns]

My father was a welder at the Port Talbot plant for more than 30 years before he was made redundant several years ago. I am from that community and understand how important the steelworks is to the income of the area. My family has been through the good times when records have been broken and the difficult times when my father, like many others, was made redundant. The Government regularly engage with many of the companies, both suppliers and customers, that work with Tata. We are determined to do everything to support them.

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

Yesterday, the Business Secretary said we need to work together, cross-party, on this, and the Secretary of State for Wales has just said the same. I understand that he is to visit Shotton on Monday—when was he intending to tell me?

[Alun Cairns]

I would have hoped that the hon. Gentleman would be grateful for, or approving of, a visit from a UK Minister to Shotton. I have been responding to the calls from the local workers, but I was in Wrexham on the day that the news broke about Shotton, and I spoke to community leaders and business leaders about the impact. I said to the community, “As soon as more information becomes available, I will return.” That is why I am returning to Shotton next Monday, and I am pleased about it.

[Nic Dakin (Scunthorpe) (Lab)]

6. What assessment he has made of the economic effect on Wales of UK membership of the EU.