European Union (Notification of Withdrawal) Bill

Debate between Paul Flynn and Jonathan Edwards

Committee: 1st sitting: House of Commons
Monday 6th February 2017 Commons Chamber

[Jonathan Edwards]

I welcome the hon. Gentleman’s intervention, and I will be supporting the new clause tabled by the Labour Front Bench if it is pushed to a vote. He is completely right. At the moment, UK Government Ministers might as well go into those Joint Ministerial Committee meetings with their iPods on and their headphones in. They are not going to listen to a word that the Welsh or Scottish Governments say, or to the representatives from Northern Ireland. There is no leverage to what is discussed in those JMC meetings. We need to firm up those processes.

The extreme Brexit favoured by the UK Government takes no account of the geographical economic divergence that exists within the British state. The Welsh economy is heavily driven by exports, and two thirds of our goods go to Europe. To willingly block those vital economic arteries would be an act of calamitous self-harm, given that 200,000 jobs in Wales are sustained by our trade with Europe. As someone whose job it is to represent the interests of my constituents and compatriots, I have a responsibility to do all I can to mitigate this Bill’s intentions.

That brings me to new clause 159, which would require the Government to explore a differentiated deal for Wales within the European economic area. The unprecedented task that lies ahead for the UK will inevitably require flexibility and, indeed, imagination. We have made it clear on a number of occasions that if the UK Government give us the assurance that Wales will keep its membership of the single market and the customs union, we will support the Bill. The Government have already conceded, rightly, that flexibility will be required to avoid a hard border between the Republic of Ireland and Northern Ireland. The joint Welsh Government-Plaid Cymru White Paper makes the case for the continuation of full participation—that is, membership—for Wales in the single market and the customs union.

[Paul Flynn]

Does the hon. Gentleman agree that the extraordinary attitude taken by the Government and the Prime Minister today on the status of the United Kingdom is entirely false? The United Kingdom does not exist as far as agriculture is concerned. The powers are exercised by the Welsh Government and the EU. If this goes through, it will be an attempt by the Government to take back powers that have already been devolved to Wales, Scotland and Northern Ireland.

House of Lords Reform and Size of the House of Commons

Debate between Paul Flynn and Jonathan Edwards

Wednesday 19th October 2016 Commons Chamber

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

It is always a pleasure to follow the hon. Member for North East Somerset (Mr Rees-Mogg), who always makes very substantial contributions when he speaks in the House during our deliberations. I rise in support of the motion from my SNP colleagues, and it is a pleasure to follow the lead of my good friend the hon. Member for Perth and North Perthshire (Pete Wishart), who gave us his usual majestic performance while opening the debate.

Since being elected, I have been immensely impressed with the robotic discipline of some Government Back Benchers when it comes to political messaging. The most infamous catchphrase during my first term here was “the long-term economic plan”. We have not heard much about that since the EU referendum, for obvious reasons. Another famous battle cry in my time here has been “cutting the cost of politics”. Today’s welcome debate on House of Lords reform gives us the opportunity to deconstruct that myth once and for all, because it is impossible to divorce culling the number of MPs from the deliberate bloating of the upper House by this Government.

Over a quarter of Welsh MPs are set to be removed under the boundary review—proportionally more than in any other constituent nation of the UK or region of England. Wales faces a double whammy: a poorer constitutional settlement in terms of powers, when compared with our friends in Scotland and Northern Ireland, yet the largest cut in representation in this place. I have no problem with equalising the size of constituencies for this House, but for that to happen and to have my support, Wales must have the same constitutional settlement as the other devolved Administrations. However, the Wales Bill, which has just made its way from this place to the other House, is a terrible Bill if we look at the powers offered to other parts of the UK.

At almost 800 Members, the House of Lords is now the second-largest Chamber on earth—beaten to the top spot only by China’s National People’s Congress, which I am led to believe has nearly 3,000 members. China, of course, has a population 28 times the size of the United Kingdom’s. Between this House and the other place, Westminster has over 1,400 politicians, and there is nothing stopping that number climbing even higher; there is no limit on the number of peers the two big parties can send to the other place, whether that involves failed career politicians or just favours to old friends. The cost of running the Lords, as we have heard, is around £100 million per annum, according to the Electoral Reform Society. Each peer costs taxpayers in our respective nations £120,000. Culling the upper House therefore seems the most obvious way of cutting the cost of politics.

It is also important to remember that Members of the upper Chamber can become Ministers: they can not only amend our laws, but make them, and that point has been missing so far from the debate.

[Paul Flynn (Newport West) (Lab)]

Does the hon. Gentleman agree that there are many defects in our constitution at the moment? One of the principal ones is the small number of Members of the Welsh Assembly. Their work has trebled, and they are under great strain—some of them are on three or four Committees. If we are to have the reforms that we need, it would be far better not to do things piecemeal and not to reduce the number of MPs only, but to have a convention, so that we can get a balance and reduce membership in other places, and that can be done only by an overall, comprehensive reform of the constitution.

[Jonathan Edwards]

I am very grateful for that intervention. I have often suspected that the hon. Gentleman—my honourable comrade—has mind-reading abilities, because that was exactly my next point.

The National Assembly for Wales, which is responsible for major public services in Wales—the health service, education, economic development and many other issues—has just 60 elected representatives. Discounting Welsh Ministers, that leaves only 42 Back Benchers to scrutinise a Government making vital decisions in my country. If the Wales Bill makes its way through the House of Lords and gets a legislative consent motion in the Assembly, although that might be in question, it would also have, for the first time, responsibility for fiscal powers in Wales. That is a clear case for increasing the numbers in the National Assembly.

Before the latest cramming of the Lords when the former Prime Minister handed out peerages to his friends, 27% of peers listed representative politics as their main profession prior to entering the Lords. Most of them had been MPs; it must be the only legislature in the world where losing elections helps people gain seats. Many colleagues have mentioned the Liberal Democrats. I am not going to attack the Lib Dems, but I remember that the Lib Dems filled two of the bottom Government Benches during the last Parliament, and when I recently went to see a debate in the House of Lords, they were all sitting there in the right-hand corner, much to my surprise. A further 7% of peers had been political staff, and twice as many had worked as staff in the royal household than as manual or skilled labour. It is hardly a Chamber that is representative of our various communities across the United Kingdom.

For as long as decisions affecting Wales are to be made in the other place, Plaid Cymru will continue to press for equal representation for us. However, we believe that there is no role for patronage and an appointment system in a modern democracy. Following the Brexit vote, the UK faces a stark choice between two futures: do we return to a very centralised system based here in Westminster or move towards a more voluntary Union, as advocated by more sensible voices such as Lord Sainsbury in the other place? In my view, this place should turn into a Parliament for England, and the House of Lords should be reformed to become a confederal Parliament.

Wales Bill

Debate between Paul Flynn and Jonathan Edwards

Monday 12th September 2016 Commons Chamber

[Paul Flynn]

The greatest part of the movement that my party has built on over the years is the co-operative movement and its great pioneers. It is a shame that we have not developed it more as a principle. Here, however, we have the opportunity to advance that principle in relation to the reality of the railways.

The purpose of the new clause is to remove the inappropriate restrictions on the exercise of Welsh Ministers’ powers over the rail franchises when they are devolved next year. Let the Welsh Assembly be free to repeat the success of Glas Cymru. It has been agreed between the two Governments that Executive powers over Wales-only services will be transferred to Welsh Ministers. Once that has been achieved, it is important that they are able to operate the franchise in line with their policy priorities.

As things stand under the provisions of the Railways Act 1993, Welsh Ministers would not be able to open the franchise to public sector operators. Those restrictions no longer apply in Scotland, as was pointed out by my hon. Friend the Member for Neath (Christina Rees), and there is no case for them to apply in Wales. If the power is devolved, there should be no policy restrictions on its exercise. It must be open to Welsh Ministers to maximise the effectiveness and efficiency of public transport in Wales, including ensuring that alternative models are fully considered and that new opportunities are seized. For example, if the Welsh Government want to open the Wales and Borders franchise to domestic public sector operators, that should be a matter for them.

[Jonathan Edwards]

I congratulate the hon. Gentleman on new clause 3—it is strong Plaid Cymru policy—but it is based on the assumption that the franchise will be devolved. There have been warm words in the past, but it is unclear from the Secretary of State’s comments that that would actually be the case—hence my new clause 10. Does the hon. Gentleman know something that I do not? Will the powers definitely be devolved?

[Paul Flynn]

That is for the Government to say, but my understanding is that they will be devolved and that is the basis of new clause 3. Such a change took place in Scotland, where it was recommended by the Smith commission. It was agreed by the UK Government and legislated for in section 57 of the Scotland Act 2016, so if we look forward with optimism, the change will come about. The new clause would make equivalent provision for Wales. In short, there is no reason why the Railways Act’s prohibition on public sector operators should apply to Welsh Ministers.

Looking at the reality of what is happening in Wales, over the last 12 years for which financial information is available, Arriva Trains Wales accumulated profits after taxation of £149 million and paid out dividends of £134 million. An average of 91.7% of profits were paid out in dividends each year, with over 100% being paid out in three of those years. Dividends accounted for a total of 11.9% of passenger income over the 12-year period, meaning that a not-for-dividend alternative to the current fiasco could result in a similar decrease in fares.

Furthermore, public funding through franchise payments from the Welsh Assembly Government far outstripped the passenger income of Arriva Trains Wales, amounting to 160% of the passenger income figure. Alternatively, it could be said that 8% of the huge taxpayer subsidy is paid out as dividends. That makes no sense. We are subsidising dividends and not lowering fares. In summary, a saving of 8% to the taxpayer or a fare reduction of almost 12% could be delivered by adopting a public ownership or not-for-dividend model. I hope that the Government will seize hold of that bold venture

The separation of jurisdictions has been a matter of great discussion and I will not spend too much time on it as I think we are under time pressure. We have been grateful for the authoritative comments and deliberations. We are currently disinclined to support amendment 60, although we are sympathetic towards it. We were told that the Lord Chancellor and Welsh Ministers should keep the justice system under review with input from the UK Government’s proposed official working group, so we proposed the appointment of an expert panel to advise them on practical legal issues. This should be a transparent and sustained road to a solution and is also the desire of the Welsh Government. We would like to maintain the suggestions made by my hon. Friend the Member for Llanelli (Nia Griffith) in the Bill’s earlier stages, but there is so much going on at the moment with Brexit and so on that it would not be sensible to make such changes. It would be rather like trying to change a car’s pistons while the engine is running, so we will not support the amendment but we understand the need for change.

Wales Bill

Debate between Paul Flynn and Jonathan Edwards

Monday 11th July 2016 Commons Chamber

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

The hon. Gentleman mentions Tryweryn, and it is of course 50 years since Gwynfor Evans won that famous by-election in Carmarthen in 1966. The major stimulus of that great victory that changed Welsh, and, arguably, UK, politics was, of course, the drowning of Tryweryn. Does the hon. Gentleman think it would be a fitting memorial to that great victory by Gwynfor Evans that this Bill finally contains the devolution of water resources to Wales?

[Paul Flynn]

I think that would be entirely appropriate. The hon. Gentleman reminds us of matters that were subjects of great passion at the time. I believe they did—as many points in history have—concentrate the feelings of those in Wales about their national identity and what was seen to be an injustice against the people of Wales. I remember the events vividly.

Wales Bill

Debate between Paul Flynn and Jonathan Edwards

Tuesday 14th June 2016 Commons Chamber

[Paul Flynn]

At business questions last week that was emphatically turned down by the Leader of the House. I hope that we can have a sensible discussion on that. It has been a huge success in the Welsh Assembly itself, where the language is used quite freely and in a very relaxed way. That is greatly to the benefit of Wales.

My main point about the Bill is about the level set in clause 36, which will act as a great restriction on Wales’s progress in using the greatest source of power that we have. It has long been neglected, yet it is like our North sea oil—it is that great cliff of water that comes up the Bristol channel twice a day. It is a source of immense power. It is entirely predictable, unlike wind or solar power—we know when it is going to happen—and it can be tapped in so many ways.

To our credit, we have already used that source in hydropower. But under the scheme in the Bill, even the hydropower station at Ffestiniog would be too big for the Welsh Assembly to authorise, at 360 MW. The one at Rheidol would have been fine, but Dinorwig would be too big at 1,800 MW. Those stations are a wonderful way of using that power. They are entirely demand responsive. The excess electricity can be used in off-peak hours to pump the water up to certain levels and then bring it back down again.

The greatest chance Wales has to produce power that is entirely non-carbon is through using the tides. Where would we be under the restriction in the Bill? The Swansea bay lagoon would be just within the 350 MW limit. But the Newport lagoons—both start at the River Usk, then one runs in the direction of Cardiff and one the other way—are both 1,800 MW. They have enormous potential. The resource is there, and the topography is perfect.

[Jonathan Edwards]

The hon. Gentleman is making some very valid points. Does he agree that the huge investment by energy companies in storage technology means that renewables could seriously take off, making them something that would be hugely beneficial to our economy in Wales?

[Paul Flynn]

Absolutely. It is the untapped resource. I know that there are objections to various other forms of power. Another question that comes in here is about nuclear power. The scheme in the Bill will not allow Wales any control over Hinkley Point, which is very close to us in Wales; although it is almost certainly doomed now. The future scheme at Wylfa would be outside the limit. Small modular schemes mostly start at about 300 MW, but go up to about 700 MW, so if people wanted to go down the road of nuclear power, they would be outside the scope set in the Bill. We should allow the visionaries of the Welsh Assembly to go ahead and develop power. We have an enormous resource. We could be a vast power station for ourselves and for the whole United Kingdom.

Inward Investment (Wales)

Debate between Paul Flynn and Jonathan Edwards

Thursday 29th November 2012 Westminster Hall

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

It is a pleasure, Mr Bone, to serve under the chairmanship of the star strike bowler of the parliamentary cricket team. I had not intended to speak, so I will keep my speech brief. I will be probably more disjointed than I usually am in my parliamentary contributions.

The report is hugely important—I congratulate the Chair of the Welsh Affairs Committee—and has been well-received, especially by the Welsh media, who gave it significant coverage. As we know, economic growth is driven by four interconnected factors, the first of which is household expenditure, which accounts for 62% of GDP growth in the UK. That is perhaps testament to overdependence on that specific component during the Labour years. The second factor is Government expenditure. We are witnessing more than £80 billion of cuts during the current comprehensive spending review, which is a major head wind for the course of the British state. The third and fourth factors are exports and business investment, in which foreign direct investment—FDI—plays a huge part. The report was very timely.

At one time, Wales was a world leader, or definitely a leader within the UK, in generating FDI. Behind my family home in Capel Hendre is an enormous industrial estate, with companies from Korea, Japan, the US and, indeed, all over the world, which is testament to its success. There have been concerns that we are over-reliant on foreign direct investment and not sufficiently promoting indigenous businesses, but there is now growing agreement that the pendulum has swung too far the other way. Unfortunately, Wales is now among the worse-performing constituent parts of the UK in terms of FDI.

We are living in an age of reductions in Government expenditure and of contraction in household expenditure. Recently, the consumer confidence index was at minus 30 —the lowest it has ever been—showing the huge economic head winds that are being faced. The hon. Member for Swansea West (Geraint Davies) wanted to appoint me as an exponent of austerity, but I assure him that I do not support the experiment of cutting Government expenditure. That policy was set by the Chancellor, so concentrating on the promotion of FDI in Wales is key to our economic well-being, and it is the one element that can help to stimulate the other two components—business investment and exports.

I want to highlight some of the report’s important recommendations. First, we need to work closely with UK Trade and Investment to help promote Wales as a destination for FDI, and I agree with comments made by Members from all parts of the Chamber. I welcome the announcement, following our report, that UKTI has based an official in Wales. We were the only component part of the United Kingdom not to have such a representative, so I am glad that that has been rectified.

I want the Department for Business, Innovation and Skills to instruct UKTI to pursue a similar path to Germany Trade and Invest, which has a remit to set specific targets for directing investment to the poorest parts of the state. That policy does not exist in the UK, but it would help to drive FDI into those areas, such as Wales, that are underperforming. Indeed, we could learn a lot from the example of German economic policy, which has enabled Germany to address huge wealth inequalities following reunification. It is incredible that, following 50 or 60 years of communism, its wealth levels are far more equal than the UK’s, but I shall not go down that road.

The signature recommendation in the report and the one most trailed in the press was the need to reuse the Welsh Development Agency brand. As a Plaid Cymru politician, I should take some credit for the original creation of the WDA, because it was the Plaid Cymru economic commission in the 1960s and 1970s—under Dafydd Wigley, Phil Williams and Eurfyl ap Gwilym—that first had the idea of the dedicated economic investment arm that later morphed into the WDA. I am not talking about reconstituting the WDA as it was when it was swallowed by the Welsh Government, but about reusing the brand. It is a global brand that, to this day, everybody recognises. The reality is that the successor bodies set up by the Welsh Government have nothing near the recognition of the WDA, so I want them urgently to reuse the brand.

[Paul Flynn]

I admire the skill of the Select Committee in choosing a day for this debate when there is no other subject to distract the media. One abiding impression of the report is that it is part of the begging bowl psychology in which we have one dominant partner in a relationship with another subservient partner, and we know which one is which. As it has come from the party, would not a more accurate title for this report have been, “One Hundred Shades of Blue”?