Brexit Readiness: Operation Yellowhammer

Hywel Williams Excerpts

Wednesday 25th September 2019 Commons Chamber

[Michael Gove]

My right hon. Friend makes an extremely important point. If we leave without a deal, refineries in this country will face a new tariff for selling fuel into the EU, which inevitably will have an impact on their business mode. The Business Secretary and I have been in touch with those companies to ensure that we are in a position to support them. It is vital that we recognise that those refineries, as well as being key distribution hubs for fuel, rely on exports to the EU and beyond as part of their current business model, which is why we are so anxious to support them.

[Hywel Williams (Arfon) (PC)]

Although the Yellowhammer report refers to the channel ports, it does not mention the Welsh ports of Fishguard and Holyhead, even though Holyhead is the second-busiest roll-on roll-off port in the UK. In August, Department for Transport documents marked “Officially sensitive” said that following an abrupt exit from the European Union, two thirds of vehicles would not be allowed into the ports. Why did Holyhead and Fishguard not warrant inclusion in Yellowhammer, or are the five pages crowbarred from the Government’s hands merely dust thrown into our eyes?

[Michael Gove]

I am grateful to the hon. Gentleman for the opportunity to say that I was discussing precisely how we can ensure the free flow of goods from Holyhead into the Irish Republic and vice versa with representatives of the Welsh Assembly Government earlier this week. I had the opportunity to visit Holyhead and to talk to the port authorities, ferry companies and hauliers, to bring them up to speed with the Government’s preparations and to learn from them what more the Government could do to help them.

UK Shared Prosperity Fund

Hywel Williams Excerpts

Thursday 5th September 2019 Commons Chamber

[Drew Hendry]

I will give way one last time, then I must make progress.

[Hywel Williams (Arfon) (PC)]

Does the hon. Gentleman agree that the difference between the European Union and the Government here in Westminster is that the European Union has a regional policy to counteract the effects of poverty, unlike this Government?

[Drew Hendry]

Yes—I am grateful to the hon. Gentleman for that comment.

Before I took those interventions, I was talking about the two icons, one of them being the Kessock bridge, which I will not go into now. It is there for everybody to see and is a monument to the fact that Europe has paid attention to the regions that need assistance. The other icon is the University of the Highlands and Islands. EU funding enables research capacity, new facilities and equipment and expert researchers, and it has enabled doctoral and post-doctoral students to support priority sectors such as life sciences, marine science, aquaculture, archaeology, Gaelic and the creative economy—all coming together to make the highlands the vibrant place it is. The University of the Highlands and Islands receives the largest Scottish grant of €7.17 million, out of €68.6 million throughout Scotland. The view of the University of the Highlands and Islands is that Brexit will reduce prospects in those areas.

Erasmus has enabled student and staff exchanges for more than 30 years. International collaboration and EU engagement are at the heart of the University of the Highlands and Islands, and have been since its inception. It was helped by the EU to achieve university status and title in 2011, and is a vital contributor to economic growth. More than £250 million of investment has been levered into the UHI through structural funding. Some 25% of the university’s non-teaching “other” income has come from the EU. If we were remaining in the EU, there would be much more potential for growth through the EU 2020-27 programmes.

Adam Haxell of MillionPlus, the Association for Modern Universities, said to me:

“On UHI itself, it is important to emphasis what a remarkable success story it has been. The idea of having a university that covered this area in the early 1990s seemed totally unrealistic to many, and it is thanks to the determination and perseverance of those involved combined with the spread of funds they were able to draw down on, namely European funding streams, that made it happen. Today, the university stands as a pillar of the regional economy of the Highlands and Islands and an important element of the modern social fabric. The range of courses that are offered through this institution, some of which relate directly to the regional culture and heritage, combine to create a unique local offer that reflects the needs and ambitions of local residents. Moreover, in the last Research Excellence Framework, 69% of research at the institution was deemed world-leading or internationally excellent. For an institution that only gained university title in 2011, this is a phenomenal trajectory and could not have happened without the support it got.”

He went on to say that

“Kate Louise McCulough has written on the historic framing of the ‘Highland problem’ in Scottish and UK public policy and how European funds played a critical role in its transformation from the 1980s to become ‘…an example of what a successful peripheral region looks like’.”

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[Hywel Williams (Arfon) (PC)]

European funding has been hugely important to Wales: particularly to my area of north Wales, but also to mid-Wales, and other areas. I echo the concern expressed by the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry): many of us are frustrated by the lack of information—any information at all, for that matter—about how the shared prosperity fund will operate. The delay in the consultation is just symptomatic of the lack of care that the Government have shown towards the European funding that we have already had and towards what will happen in future, suggesting that regional funding is a low priority for this Government.

This issue is incredibly important in Wales, because we get a large amount of European funding. In fact, we get four and a half times more per head from the European Union in funding than any other nation or region in the UK. Of course, this was not always the case. Some people here will recall that the maps were redrawn to delineate west Wales and the valleys as the area that would get funding. These maps are called nomenclature of territorial units for statistics maps—ludicrously known as NUTS maps, as that is the acronym. The previous NUTS map for Wales put poor west Wales, where I live, in with the rather more prosperous north-east Wales, and south-west Wales in with the rather more prosperous Cardiff area. When the map was redrawn, suddenly we were allocated funding under the European Union’s regional policy, showing the value of that policy and also that a degree of cleverness is required in acquiring that funding, which we eventually showed.

Wales—particularly my area—is economically on a par with the former communist parts of eastern Europe, Portugal and southern Spain. That is not something that we celebrate, of course, although it does bring us in a certain amount of funding. Rather, it is the consequence of decades of marginalisation, neglect and mismanagement by Westminster. Let me echo the points made by the hon. Member for Inverness, Nairn, Badenoch and Strathspey. At the very least, can we have an assurance from the Minister that not a penny less will come to Wales under this fund as compared with under European funding?

[Bob Stewart (Beckenham) (Con)]

My reading is that, actually, the funding will continue. It will just not come from Europe; it will come from London—at least in the immediate future.

[Hywel Williams]

The hon. Gentleman may be right, but I would like some confirmation of that, and certainly more information than “the immediate future” because we are looking beyond 2021. There are projects whose timescales demand that. In fact, there are projects in my community that require funding for many years into the future, including projects at Bangor University.

What is also extremely unclear, to me at least—perhaps the Minister can enlighten us—is the criteria for the allocation of money under the shared prosperity fund. I would argue for allocation on the basis of need. We will not accept the milking of funds that would otherwise have gone to Wales to fund projects elsewhere. That is certainly a fear. For example, Welsh farming might proportionately get considerably less money than one would expect if the criteria were based on, say, per head funding.

[Albert Owen]

I represent a neighbouring constituency, so I share many of these projects in north-west Wales with the hon. Gentleman. He talked about the agricultural community. Is it not important that any new allocation of funds is not made through the Barnett formula, as this would mean a huge reduction in moneys allocated? We are talking here about food production, much of which is exported to mainland Europe.

[Hywel Williams]

The hon. Gentleman makes a good point. I raised it with the then Minister over two years ago and was given a verbal assurance that that would not be the case. Were we to use the Barnett formula, funding to Welsh farming would probably be halved. At that time, the Minister gave us a verbal assurance, but I seek a similar reassurance from the Minister today.

Funding should go directly to our Government in Cardiff, rather than being allocated directly from London to individual local authorities and organisations. There is much merit in ensuring that local organisations and local government get the maximum funding. I have heard the argument that diverting money through Cardiff would increase bureaucracy and cost, but the fundamental argument is that the competent authority should be the Government in Wales. Any move in any other direction would undermine the devolution settlement and would be resisted by Members on these Benches and others.

To close, I should point out again to the Government that Wales is another country and that EU membership has had a different value and quality for us in Wales, as reflected in the funding we have been getting. That is particularly the case in my own area of Gwynedd, despite its poverty. One might suppose that that would put us in with areas that voted strongly to leave the EU, because of the marginalisation, poverty and distance from London and the seat of power. In fact Gwynedd voted 60:40 to remain, because of our values, the way we see the world, our culture, our bilinguality and our happiness at being part of the EU, which is much more congenial to us. Gwynedd is a different place—Wales is a different place—and should be treated with respect.

20 Years of Devolution

Hywel Williams Excerpts

Thursday 11th July 2019 Commons Chamber

[Pete Wishart (Perth and North Perthshire) (SNP)]

I beg to move,

That this House has considered 20 years of devolution.

It is with great pleasure that I open this debate on 20 years of devolution on behalf of the Select Committee on Scottish Affairs and the Select Committee on Welsh Affairs. Twenty years of devolution—it is hard to believe. It has been 20 years since our Parliaments opened their doors, transforming our nations and redefining the political culture of our countries. Our nations are better because of devolution. Our national life has been transformed, and we now have a distinctive voice because we have Parliaments within our nations.

Devolution has come of age and there will be no going back to before our Parliaments opened their doors to the world. I remember that day 20 years ago: I was going to be a candidate for the Scottish Parliament, and it was only the finishing of a Runrig album that got in the way and delayed my parliamentary career by two years. I sometimes wonder what would have happened if had I managed to secure a place in the Scottish Parliament—[Interruption.] I am hearing that there is still time yet, but as someone approaching the autumn of their career I will maybe just think about that one.

I remember the expectation in the air that day—the sense of anticipation and excitement that at last we could get down to the business of designing our own future because we had our Parliaments. I will never forget the look on Donald Dewar’s face when he said, “There will be a Scottish Parliament,” and he just had to add, “I like that.” And I will never forget Winnie Ewing taking the chair for the first time—Winnie Ewing, whose 90th birthday was yesterday, a celebrated figure in Scotland to whom we owe a great debt—and saying:

“the Scottish Parliament, which adjourned on 25 March 1707, is hereby reconvened.” —[Scottish Parliament Official Report, 12 May 1999; c. 5.]

We have had our disagreements like any other normal Parliament or Assembly, and we have scrutinised Governments just as they do everywhere else, but we have worked with a great deal of consensus. There have been fantastic examples of cross-party work, pioneering and innovation in the Scottish Parliament, and it is worth looking at some of the things that we have achieved in the course of those 20 years.

There has, for example, been pioneering health work. We were the first country in the United Kingdom to introduce a ban on smoking in public places, and we know about the health dividend that has resulted from that piece of legislation. We recently introduced minimum unit pricing for alcohol, and there is already reasonable evidence that that is starting to have an impact on health outcomes. We have also made democratic reforms: 16 and 17-year-olds in Scotland now have votes, and we have proportional representation in local government elections, just as we do in the election of the Parliament itself. Then there is the social agenda: free personal care for our elderly in Scotland, free higher education, and free prescription charges. All those initiatives, and many more, are helping to make ours a better and fairer country.

This is often credited to Donald Dewar, but it was in fact a Welshman, Ron Davies, who said:

“Devolution is a process…not an event”.

What a process it has been, and what a journey we have been on! As a legislative body, the Scottish Parliament is an entirely different creature from the one that opened its doors back in June 1999. Two further Scotland Acts—the 2012 and 2016 Acts—followed the 1998 Act, which established the Scottish Parliament, and have significantly increased its powers. It now controls large swathes of welfare legislation, and its taxation powers mean that we can set our own income tax rates in Scotland. The Welsh Assembly is about to become the Senedd, and Scotland now has a Government. We in Scotland have had coalition government, majority government—although the rules are supposed to forbid such a thing—and two episodes of minority government, and still we move forward.

[Hywel Williams (Arfon) (PC)]

Does my hon. Friend agree that the Welsh Assembly has advanced even further, given that we were somewhat behind our Scottish friends at the start of the process? It has travelled from being essentially a glorified county council to being a law-making body, which will hopefully proceed very quickly to take on many more law-making and tax-raising powers, leading eventually to independence.

[Pete Wishart]

I am more than happy to agree with my hon. Friend. As we observe what has happened in Wales, we see that the pace of the change has been quite dramatic. My hon. Friend is right to point out that Wales now has a law-making Assembly. There was some discussion yesterday about its being renamed the Senedd, which I think will prove very worthwhile and valuable. We are on a journey, and it is not finished yet.

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[Pete Wishart]

The hon. Lady is an assiduous member of the Scottish Affairs Committee, and as I look around the Chamber I see other assiduous members. I agree with what she has said, but I think it is incumbent on us to have the mechanism, the infrastructure and the machinery to ensure that when Governments disagree—as they will when they have particularly different policy objectives —we can accommodate that disagreement, shape it up, and resolve some of the tensions and difficulties that are encountered.

Let me now go back to the beginning, because, as the hon. Lady knows, the Committee looked into this in great detail and heard a great deal of evidence. In the early days of devolution, everything was straightforward and easy. The Labour party was in government in Cardiff, Edinburgh and London, and intergovernmental relations were conducted among comrades, friends and colleagues who would just pick up the phone and get in touch with each other to resolve any difficulties. They were generally resolved very easily; I am sure that you remember those days, Madam Deputy Speaker.

Only one issue was not resolved, and it remains in the name of the bar in the Scottish Parliament. In a dramatic rebuke to Scottish colleagues who dared to suggest that they should become a Government, Big Brother down here—in the form of Labour Members—said, “They can call themselves the White Heather Club, but they will never be a Government.” To this day, the bar in Holyrood is called the White Heather Club as testimony to that fantastic rebuke from our Big Brother Westminster Labour colleagues.

It took the UK Government three years to keep up with developments and acknowledge the change when Alex Salmond rebranded the then—it has to be said—pathetically named Scottish Executive the Scottish Government.

I think it is fair to say that the cosy relationship that existed in the early days of devolution was pretty much shattered with the arrival of the SNP minority Government in 2007. This was an SNP Government who were prepared to push the boundaries of the devolution settlement and who tried to define a new means and method for us to assert ourselves as a nation, and they were not content being restricted to what was available in the then devolution settlement.

Then of course came the independence referendum, and who will ever forget that? Curiously, inter-Government relationships survived the referendum relatively intact, and that was because there was a need for engagement between the two Governments and we had the Edinburgh agreement and rules were set up for that. That taught us the lesson that things can be done if there is structure, rules and a means to come together for agreed objectives, and the agreed objective during the independence referendum was that it would be done properly and constitutionally.

Brexit has broken that, however. What we have with Brexit is two Governments, one in Scotland and one in London, with totally different objectives on the issue of leaving the European Union. Scotland wants nothing whatsoever to do with Brexit; it returned one MP with a mandate for an EU referendum, and we have consistently said we find this counter to our national interests. But of course we have a UK Government determined to deliver Brexit. We should have in place, however, a means to be able to accommodate that—to be able to ensure that these types of differences can be dealt with and negotiated smoothly.

That brings us to the machinery of all this. At the very top is the Joint Ministerial Committee. We looked at a number of options for transforming or even replacing it, but came to the conclusion that replacing it would not serve any great purpose. So we suggested a number of things that we could do to improve the functioning of the JMC, because it is not working properly; it does not have the confidence of the Scottish Government and it does not particularly have the confidence of the Welsh Government. The UK Government set the agenda, and they are responsible for all the dispute resolutions, and they seem to be the arbiter of what happens and how things are conducted.

We said that things have to change dramatically, and there is one phrase that runs through almost every chapter of our report: “parity of esteem”. We therefore propose that the JMC be a body where all four of the Governments are treated as equals, and as such we recommended that JMC meetings should be hosted and chaired by each of the UK Administrations on a rotating basis, and that meetings should be held frequently and have a set schedule with agendas agreed in advance between all parties.

We also asked the Government to explore third-party mediation, because again we received a number of pieces of evidence that suggested that this was not working. We also said that the JMC should look at dispute resolution and made a number of recommendations about Whitehall Departments becoming devolution-proof.

[Hywel Williams]

Further to that point, the JMC has been described as not fit for purpose in its current form. Its fitness for purpose would be greatly aided if it had its own secretariat, and if it had a statutory basis as well.

[Pete Wishart]

We have recommended that the Government look at the JMC having its own secretariat, and the UK Government have now said they are prepared to explore that. However, I want to come back to the Government’s response to our report, and I think that what the Government are prepared to do will delight the hon. Gentleman.

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

I thank the hon. Member for Perth and North Perthshire (Pete Wishart) for bringing forward this important debate, although I cannot see the past 20 years in quite the same positive light that he has set out. Slightly more than 20 years ago, I was part of the anti-Welsh Assembly no campaign. That was one of my first entrées into politics. We lost, but I felt as a democrat that it was important to respect the will of the people of Wales, so there was no suggestion afterwards that we should try to challenge the result in the courts or say that people had been tricked by Welsh Labour—although I think to some extent that they were; I will come back to that in a minute—or say that people had changed their minds the next day.

We simply respected the fact that the people of Wales had spoken, and I want to put on record right now as a Conservative and as somebody who opposed the Welsh Assembly 20 years ago that it would be absolutely wrong to try to undermine the Welsh Assembly, take away its powers or get rid of it in any way at all. I say that as somebody who was very strongly opposed to it 20 years ago. It would be wrong to do that because the people of Wales voted not once but twice to have a Welsh Assembly and it behoves us all as democrats to respect the voice of the people of Wales, to work with the National Assembly for Wales and to make sure the whole thing is a success. Similarly, had Scotland voted for independence in its referendum, we would have been expected, quite rightly, to respect the voice of the people of Scotland.

It is a bit of a disappointment to me that, having made this clear over the past 20 years, the Welsh Assembly Members who owe their jobs to a referendum that took place 20 years ago are now doing their utmost to try to ignore the will of the people of Wales in the subsequent referendum on Brexit, where a much larger number of people turned out and voted by a much clearer majority in favour of Brexit. I hope that the hon. Member for Perth and North Perthshire, who believes that we should to listen to the will of the people, will agree that Wales spoke clearly for Brexit, that Britain spoke clearly for Brexit and that Members of Parliament have an obligation to honour the result and bring it in in some way.

One could build an argument—one would be wrong to do so—against the Welsh Assembly on the basis that it has failed to deliver on the promises that were made 20 years ago. We were told that we would have a better health service, better education, a better economy, better transport and so on. The reality in Wales at least has been that we now have longer hospital waiting lists, longer responses and waits for ambulances, longer waits in accident and emergency units and less access to cancer drugs.

[Hywel Williams]

Will the hon. Gentleman clear up some confusion? He is referring to the Welsh Assembly as achieving or not achieving those aims, but clearly they are matters for the Welsh Government, who have been Labour since the inception of the Assembly.

[David T. C. Davies]

Absolutely; that is a very fair comment. I consider myself told off, and rightly so. The hon. Gentleman is correct to say that it is the Welsh Government who have failed on the health service. They have also failed on education—

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[Hywel Williams]

Will the hon. Gentleman give way?

[David T. C. Davies]

I will not, as I have apparently got only one minute left, and I am still on my first page.

There has been a failure on transport in Wales. There has also been a failure on the economy. Even the Economy Minister in the Welsh Government has said that we do not know what we are doing with it. There has also been a significant failure on value for money and an inability sometimes to see through the boasts and exaggerated claims that are made by people who are seeking grants. That is a matter of some disappointment to me, but of course it is actually Welsh Labour that is responsible for this, not the National Assembly for Wales. That is why I am looking forward to seeing Conservatives being elected into government at the next Welsh Assembly elections and, yes, if necessary, to working with members of Plaid Cymru and the Liberal Democrats to ensure that we get a change from the one-party rule that has dominated Wales for far too long.

By a strange irony, here I am 20 years later making an argument for more powers for the Welsh Assembly, because where there is a case to be made for it, I am happy to see the Assembly getting powers over issues such as air passenger duty, which is something that we recommended strongly in our report. It is a pity that I have not got time to get on to Brexit and to point out the obvious contradiction in the fact that, while the Scottish National party and Plaid Cymru rightly make points about Catalonia, it is the European Union that is opposed to regional entities such as Catalonia becoming nation states. The real supporter of devolution is the Conservative and Unionist party. Not only are we handing powers over to the Parliaments of Scotland and Wales, but we want to hand more powers over to them, because the biggest exercise in devolution is going on right now. We are taking powers away from Brussels and bringing them back to London, whereupon we will start to distribute them out to Edinburgh, to Cardiff, to Belfast and, of course, to the regions of England. So all those who support devolution and believe that power should be brought back closer to the people should also be supporting Brexit and democracy.

G20 and Leadership of EU Institutions

Hywel Williams Excerpts

Wednesday 3rd July 2019 Commons Chamber

[The Prime Minister]

I sincerely hope that, after considerable discussion and consultation with the European Parliament, the European Parliament will feel able to accept the package of nominees for top jobs. Of course, the Parliament will be voting on the President of the Parliament as well. But there was considerable discussion with the European Parliament as part of the process, so I hope that it would feel able to accept this set of nominees, notwithstanding, of course, that none of them was one of the Spitzenkandidaten who were put forward.

[Hywel Williams (Arfon) (PC)]

I commend the Prime Minister for her forthright stance with President Putin over the nerve gas that killed Dawn Sturgess in Salisbury. Will she confirm that she took an equally forthright stance with President Trump, whose views on the climate emergency will, if sustained, lead to the deaths of many millions of people around the world?

[The Prime Minister]

I have raised the United States’s approach to climate change, and particularly to the Paris agreement, with President Trump on many occasions, and I continue to raise it with him.

Oral Answers to Questions

Hywel Williams Excerpts

Wednesday 26th June 2019 Commons Chamber

[Hywel Williams (Arfon) (PC)]

How many Welsh exporting manufacturers are moving workers to the EU27 to set up front offices, distribution centres and so forth, and what help are the Government giving them to export Welsh jobs?

[Alun Cairns]

I am grateful to the hon. Gentleman for providing me with the opportunity to highlight the Welsh economy’s export record. Exports are now at £17.7 billion—that is a 7.5% increase, which highlights how the Welsh economy is exporting strongly and at record levels.

European Council

Hywel Williams Excerpts

Monday 24th June 2019 Commons Chamber

[The Prime Minister]

There was no such discussion.

[Hywel Williams (Arfon) (PC)]

I thank the Prime Minister for prior sight of her statement. I think the whole House would welcome any progress on climate change. On Wednesday, I am hosting a Welsh lobby in Committee Room 10 as part of the wider “The Time is Now” lobby on that day. Will the Prime Minister welcome the young people from Wales who will be taking part on Wednesday, and in particular those who marched through the city of Bangor recently—young people who have so effectively put climate change at the heart of the political debate?

[The Prime Minister]

I am happy to welcome the young people who will be coming to the event the hon. Gentleman is holding here in the House on Wednesday. This is an important issue. It is one that young people have taken up and championed with vigour and energy, and it is right that we respond to their concerns.

EU Parliament Elections: Denial of Votes

Hywel Williams Excerpts

Tuesday 4th June 2019 Commons Chamber

[Kevin Foster]

I think that one is probably slightly beyond the scope of this urgent question. I would always say that it is good to have quality of support, if not necessarily quantity, on the Benches with me. The key issue in elections is that we comply with the law, and the law is as it has been set down for previous European elections. A key part of that is making sure that we comply with European law, given that this is not purely a vote in the UK about UK delegation members—it is ultimately an election of the entire European Parliament.

[Hywel Williams (Arfon) (PC)]

Listening to the Minister’s initial answer, I wondered, if this was all so good, why did it turn out so badly? The Government claim to have been preparing for “all Brexit eventualities”, yet despite the billions of pounds being set aside, we have still had this blundering democratic deficit. Is there not a real danger that this Government’s reputation for Brexit splits and betrayals will be excelled by an equally deserved reputation for incompetence?

[Kevin Foster]

The thing I look at is that the turnout rose for the European elections this time. There may be criticisms about how things are handled, but I always look at how many people turned out and engaged, and it was the highest turnout for 20 years.

Oral Answers to Questions

Hywel Williams Excerpts

Wednesday 15th May 2019 Commons Chamber

[Hywel Williams (Arfon) (PC)]

Given that the Wales Office has no exclusive responsibility for any of the 300-odd work streams associated with Brexit and that we have had 20 years of devolution under a Welsh Government who have legislative and taxation powers, can the Secretary of State give the House a necessarily brief definition of his role and function?

[Alun Cairns]

The hon. Gentleman raises an interesting question. Of course the cross-Government responsibilities in which the Wales Office is active and interested go far and wide. I happily point to the crossings and the Severn toll as one example. Wales is also the only part of the UK to have a city and growth deal in every area.

[Hywel Williams]

I thank the right hon. Gentleman for that answer but, just for starters: electrification of the railway west of Cardiff, abandoned; electrification of the north Wales line, a pipe dream; the Swansea Bay tidal lagoon, cancelled; the post-Brexit shared prosperity fund, handed to an England-only Department; and, as I said, the Wales Office has no exclusive Brexit responsibilities. Is not his function just to nod through Conservative policies, whatever the cost to Wales?

[Alun Cairns]

The hon. Gentleman should be practical and realistic in what he calls for. He will be fully aware that electrification of the railway to Swansea offers no tangible benefits to passengers. He will also be aware that the Public Accounts Committee called for re-analysis of each section of the electrification, and it was on that basis that we came to the same outcome by delivering the most modern trains, which happen to be hybrid. Is he seeking to support a tidal lagoon that would be three times the cost of an alternative green provider?

Wales: Regional Development Funding

Hywel Williams Excerpts

Tuesday 7th May 2019 Westminster Hall

[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.

--- Later in debate ---

[Kevin Foster]

I thank the hon. Gentleman for his further intervention. As I said, I do not want to get into specific dates, but I am clear that the spending review will set out how we approach the fund in the future. I am not surprised to see such passion. We will ask people across Wales about the size, structure and priorities for the fund, and that will develop as we approach this year’s crucial spending review. Given the continuing debates about our EU exit, it is clearly hard to give a specific date, although, as the hon. Gentleman knows, constructive discussions are ongoing between our Front Benches as we speak.

[Hywel Williams]

I understand that the Minister cannot go into any detail about the fund itself, but can he give us some indication of the principles behind it? Will it be based on need, or on some sort of competitive tendering or competitive proposals, either between Wales and other regions and nations, or even within Wales itself?

[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.

European Council

Hywel Williams Excerpts

Monday 25th March 2019 Commons Chamber

[Hywel Williams (Arfon) (PC)]

Would the Prime Minister think it constructive were we able to secure a single majority view from the indicative votes process, or would she prefer further indecision?

[The Prime Minister]

I indicated earlier that the Government are not giving a blank cheque to the indicative votes process, which is important. It is perfectly possible that the House might come to a decision, to contradictory decisions or to no decision at all. We will obviously have to engage constructively with whatever comes out of those votes.