Oral Answers to Questions

David T C Davies Excerpts

Wednesday 16th September 2020 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

What recent discussions he has had with the First Minister of Wales on the effect on the Welsh economy in the event that the UK does not reach an agreement with the EU on the future relationship by the end of the transition period.

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

The Secretary of State and I have had regular discussions with Welsh Ministers, including the First Minister, on a wide range of matters, including preparations for the end of the transition period. Preparations for the end of the year are well advanced, and build on the plans that we had in place for a no-deal scenario in 2019.

[Kevin Brennan]

When he has had those discussions with the First Minister, has the Minister discussed how the so-called shared prosperity fund will be spent in Wales? I do not know whether he has seen any opinion polls recently, but far from people in Wales regarding the Welsh Government as a “cosy clique in Cardiff”, as the Secretary of State puts it, they far prefer the Welsh Government to run their affairs to a swivel-eyed bunch of incompetents in Westminster doing so. Will the Minister commit to the House, now, that every penny of that money will be allowed to be spent by the democratically elected Government in Cardiff?

[David T. C. Davies]

There are no swivel-eyes on this side of the Chamber. The hon. Gentleman ought to restrain himself a little; I do not think anyone would want to be looking at his eyes at the moment. The reality is that far more people voted for Members of Parliament in Wales than voted for Members of the Welsh Assembly—the turnout is always high, which rather rebuts the hon. Gentleman’s point. We have already said that the shared prosperity fund will match the amount of money that came from the European Union, and that will of course be spent in Wales after discussions with Ministers in both the Senedd and Parliament.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The Minister will be aware of the news overnight that Hitachi has decided to pull out of the project to build the Wylfa Newydd nuclear power station on Anglesey—a project that is not only of strategic importance to the Welsh economy but will help the UK to meet its net zero target by 2050. Will my hon. Friend leave no stone unturned in the quest to see whether there is a way forward for the project? In particular, will he continue his discussions with ministerial colleagues here and in Cardiff Bay and continue to work with my hon. Friend the Member for Ynys Môn (Virginia Crosbie), who has worked so hard to get the project moving?

[David T. C. Davies]

I am happy to confirm that my right hon. Friend the Secretary of State has already had discussions with Horizon about this matter. The announcement was deeply disappointing for us all and came on the back of Hitachi’s concerns, so I am told, about the covid situation and the Japanese economy. None the less, Wylfa is one of the best sites in the world at which to build a nuclear power station and I understand that Horizon has already been sounding out the possibility of the project going ahead with other developers.

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

What discussions he has had with the Welsh Government on the comparative effectiveness of the (a) Development Bank of Wales and (b) high street banks in providing finance to business in Wales during the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

High street banks have been at the forefront of lending to firms impacted by covid-19. They have provided support to Welsh firms through more than £1.1 billion-worth of loans under the Government’s bounce back loan scheme and £300 million of loans under the Government’s coronavirus business interruption loan scheme. There has also been an additional £100 million of lending through the Development Bank of Wales, which has been a useful contribution.

[Mr Speaker]

Let us head over to New York with Geraint Davies.

[Geraint Davies [V]]

Thank you very much from over here in Wales.

The Development Bank of Wales has been found by the Welsh Affairs Committee to be much more effective in the delivery of coronavirus loans to business than high streets banks, which have been found to be unresponsive, delayed and risk-averse, and not to understand local businesses. Will the Secretary of State and the Minister impress on the Chancellor the need to provide more funding for the Development Bank of Wales and to import this excellent idea into England to help all British business?

[David T. C. Davies]

I suppose it would not come as a great surprise to the hon. Gentleman, or to anyone who understands economics, as he does, that a high street bank is always going to be slightly more risk-averse than a bank backed by the UK Treasury. None the less, I draw the hon. Gentleman’s attention to the figures I gave earlier, which show that around £1.4 billion has been lent to businesses in Wales via high street banks utilising Government schemes, and £100 million has come via the Development Bank of Wales. This is not some sort of competition; we welcome every single pound that has been lent to Welsh businesses, no matter where it has come from.

[Robbie Moore (Keighley) (Con)]

What recent discussions he has had with the Welsh Government on covid-19 testing in Wales.

[The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)]

My hon. Friend will be aware that testing for covid in Wales is a matter for the Welsh Government and we respect their devolved responsibilities. I understand that the Welsh Government have decided to seek support from the UK Government for testing in Wales, which is a responsibility of the Welsh Government, so the Department of Health and Social Care has been working directly with them to offer the help that they need to deliver an efficient testing and analysis programme.

[Robbie Moore]

We have made huge progress in rapidly scaling up our testing capacity, and I have witnessed that myself in my constituency of Keighley, but there is always more that we can do. What steps is my hon. Friend taking to explore with the Welsh Government the benefits of repeat population testing, and, if that proves effective, how can it be scaled up across Wales and the rest of the UK?

[David T. C. Davies]

As my hon. Friend will be aware, we have made enormous strides in increasing the amount of daily testing that is available, but it is not yet enough in either Wales or England, or elsewhere in the United Kingdom, to meet the huge rise in demand that we have seen over the past few weeks. The UK Government have set a target of a 500,000-a-day testing capacity for the end of October, and we are also increasing the number of testing sites to 500 by the end of October. Across Wales and the United Kingdom, Governments of all sorts of different political persuasions are working hard and working together to increase testing and to meet the demand.

[Fay Jones (Brecon and Radnorshire) (Con)]

What steps the Government are taking to support people back into work in Wales.