Oral Answers to Questions

Debate between Wayne David and Alun Cairns

Wednesday 4th September 2019 Commons Chamber

[Bambos Charalambous (Enfield, Southgate) (Lab)]

10. What recent economic assessment he has made of the potential effect on Wales of the implementation of the withdrawal agreement.

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

The best outcome for Wales and the Welsh economy is that the UK leaves the European Union in an orderly manner with a deal. We will continue to work with energy and determination to make sure that that happens. However, the UK will be leaving the European Union on 31 October.

[Wayne David]

Given that 90% of Welsh lamb is exported to other countries in the European Union, does the Secretary of State still believe that, in the event of a no-deal Brexit, a viable alternative market will be Japan?

[Alun Cairns]

The hon. Gentleman makes a good point. I met the Farmers Union of Wales yesterday, and I will be meeting NFU Cymru quite soon. The Japanese market is a new market that opened in January. It is wholly separate from the free trade agreement that the European Union has with Japan, so there has been lots of misreporting that the hon. Gentleman fails to recognise and understand. However, his constituency voted to leave the European Union—why is he trying to stop the process?

Oral Answers to Questions

Debate between Wayne David and Alun Cairns

Wednesday 23rd January 2019 Commons Chamber

[Alun Cairns]

I am grateful to my hon. Friend for raising that question. He will be well aware that, in the past quarter, the UK economy was growing faster than the eurozone economy—the UK grew by 0.6% while the German and Italian economies went into decline. That highlights some of the opportunities that we face but, of course, we can grasp them in the smoothest way only if we manage to get a deal with the European Union.

[Wayne David (Caerphilly) (Lab)]

Given that the Wales CBI has said that a no-deal Brexit will see a £7 billion annual fall in Welsh manufacturing output and output generally in the economy, will he, for goodness’ sake, simply admit that a no-deal Brexit will be bad for Wales? Before he responds, let me say that I do not want a Maybotic answer.

[Alun Cairns]

The hon. Gentleman will know that there are many predictions in economic forecasts, but they are forecasts rather than fact. He will have predicted a recession after the 2010 general election—he may well have even predicted a double or treble-dip recession—but I hope that he will recognise the fantastic employment data that was published yesterday showing record numbers of people in work in Wales. The inactivity rates in Wales are at staggeringly positive numbers, matching the rest of the UK for the first time since records began.

Welsh Affairs

Debate between Wayne David and Alun Cairns

Monday 19th March 2018 Commons Chamber

[Alun Cairns]

I want to make some progress, then I will give way.

I was discussing the opportunities for Wales as we leave the European Union. I hope Members throughout the House will welcome the news earlier today that an agreement in principle has been reached with the European Union on the implementation period. As the Prime Minister has said, that shows that with good will on both sides, it is possible to agree an arrangement that works for all sides.

As we leave the European Union, the Union of the UK is more important than ever before. We are a Union of four nations developed over a long history, communicated through a common culture and a shared identity. As a result of joint working and the collaborative approach taken by the UK Government and the Welsh Government, we have delivered a fiscal framework that secures Welsh funding over the long term and a Wales Act that puts Welsh devolution on a stable footing.

Despite what is often reported in the press, the relationship between the Governments is positive, and I take pride in that, along with the First Minister. While there will undoubtedly be challenges ahead, Wales is well placed to benefit from the many opportunities that leaving the European Union offers, such as the chance to form new partnerships, maintain relationships with old allies and become true beneficiaries of the UK being a global leader in free trade.

[Wayne David (Caerphilly) (Lab)]

The Secretary of State must be concerned by a leaked document from the Government five weeks ago indicating that there would be a 9.5% reduction in Wales’s economic growth rate if the Government failed to achieve a deal with our European partners. If the Government are considering the possibility of no deal, he must be extremely concerned about that projection.

[Alun Cairns]

The hon. Gentleman tempts me, but he knows that the Government do not comment on leaked documents. Statements have been made that those documents were not complete, nor were they approved by Ministers.

I am happy to talk about the strength of the Welsh economy and the opportunities we have to exploit the UK being a global leader in free trade. Wales was the fastest-growing nation in the UK in 2016. We have 98,000 more people in work since 2010, with 44,000 more women in work and unemployment down by 48,000 compared with 2010. That demonstrates the strength of the Welsh economy, in which I have significant confidence.

--- Later in debate ---

[Wayne David]

Will the Secretary of State give way?

[Alun Cairns]

I will give way in a moment, but I want to finish this important point.

This means that we expect to be able to devolve 40 areas with either no frameworks or only informal agreements. The result is that the vast majority of powers returning from Brussels that intersect with devolved competence will fall under the full control of the devolved Administrations from day one of exit.

--- Later in debate ---

[Alun Cairns]

Clearly, we will consult, but we will also use and honour the Sewel convention, which is the basis on which legislation has been developed and drafted ever since 1999—with the agreement of the devolved Administration.

[Wayne David]

rose—

[Alun Cairns]

I will give way to the hon. Gentleman, but I then want to make some progress.

--- Later in debate ---

[Wayne David]

The Secretary of State is very kind. This is an important point, and it is important to have clarification. He has mentioned the retention of powers “on a temporary basis”. How long is temporary?

[Alun Cairns]

The reason for using the word “temporary” is that we want to bring in order-making powers for 24 areas of law to use them to protect the UK market until we have reached a position of agreement with the devolved Administrations on how we will enact legislation to put in place frameworks on those areas of law. In each and every one of the areas, we will, as we progress through the 24 areas, use the Sewel convention. This demonstrates the pragmatic, positive process we are pursuing. I could easily give some simple, practical examples of why this is important, but Wales has certainly more to gain than it has to lose. I have highlighted the fact that 80% of Welsh output goes to the rest of the UK, and that undermines—sorry, underlines; let me clarify that this underlines—the importance of doing the right thing on these 24 areas of law, because one part of the United Kingdom should not be given the power to hold up every other part.

Much attention is understandably given to the EU market, but the UK market is central to the success of the Welsh economy, and we must recognise the importance of the UK market to investment and jobs. As I have mentioned, 80% of Welsh output goes to the rest of the United Kingdom, so protecting the internal UK market will protect jobs and investment in Wales and across the UK. Where these limited common frameworks are needed or indeed essential, we will continue to apply the principles of the Sewel convention, seeking the support of the devolved Administration at every stage. This is an entirely reasonable proposition, and follows the foundations on which devolution has been established since 1999. I hope that the Welsh Government and Labour Members will recognise that we have moved a considerable way on this, and will see the importance of providing as much certainty and continuity as possible for businesses in Wales. We will continue to work closely with the Welsh Government to secure their agreement to promote a positive recommendation on a legislative consent motion in the Assembly.

Advice on the 24 areas, as well as on the others that we do not want to be subject to an order-making power, has come from industry itself. An expert panel was established, and businesses have raised genuine concerns about their UK prospects being undermined. Industry has advised us all the way along, and that is how we have ended up with these 24 areas. Any action to scupper that will be undermining—genuinely undermining —industry and business, as well as investment prospects, in Wales.

Agriculture is a key area of the Welsh economy and central to our way of life across Wales. Last summer, I hosted the Environment Secretary at the Royal Welsh show where, in one his first official engagements, he met the Farmers Unions of Wales, the National Farmers Union Cymru, the Country Land and Business Association and other key stakeholders, as well as my hon. Friend the Member for Brecon and Radnorshire (Chris Davies), who was working at the show that day. Our engagement with them has continued since then, with all of them having regular access to UK Government Ministers and officials. Most recently, the farming Minister—the Minister for Agriculture, Fisheries and Food, my hon. Friend the Member for Camborne and Redruth (George Eustice)—met a group of representatives at the Royal Welsh agricultural showground to discuss our exit from the EU, but also to talk about longer-term plans for the UK’s environment and agriculture sectors.

At many of those meetings, if not all, geographical indicators have been raised, because we all recognise the importance of labelling, marketing and branding our produce. A moment ago, I talked about clause 11 and frameworks. This is a good example of why a UK approach is needed to protect the interests of producers and consumers. We obviously need common regulations on food labelling across the UK because we rightly want to protect the status of Welsh lamb, Welsh beef, Halen Môn and many other brands, so that they are recognised and protected across the UK and beyond. That does not mean, as has been suggested, a one-size-fits-all approach to branding. We are committed to protecting all 84 of the registered geographical indicators now and after EU exit.

Autumn Budget as it Relates to Wales (Morning sitting)

Debate between Wayne David and Alun Cairns

Wednesday 7th February 2018 General Committees

[Alun Cairns]

Rwyf yn falch iawn fod y cwestiwn yna wedi cael ei ofyn. Rwyf yn deall y peryg ac yn ymwybodol o’r sensitifrwydd. Mae’n rhaid bod y partneriaid lleol yn ymateb i hyn, er mwyn bod setliad gan bawb. Os nad yw pawb yn gytûn, yn amlwg, bydd y bargen dinesig a’r bargen twf ddim yn cael cefnogaeth gen i na’r partneriaid lleol eraill. Mae’n rhaid fod pawb yn gytûn yn y broses. Rwyf yn awyddus i weld busnesau ledled y rhanbarth a thu hwnt yn hybu'r bargeinion hyn, gan adeiladu ar gryfderau'r ardaloedd—pob ardal—gweithio'n drawsffiniol a rhoi hwb i'r economi lleol.

Roedd y Gyllideb hefyd yn cydnabod bod angen gwella ein rhwydwaith rheilffyrdd, gan roi hwb i gysylltiadau a gwella teithiau i gwsmeriaid ar y trenau mwyaf diweddar.

(Translation) I am very glad that that question was asked. Obviously, I understand the risk, and I am aware of the sensitivity that arises. Local partners must respond to that to ensure that the settlement is for everyone, because if everyone is not agreed, obviously the city or growth deal would not be supported, whether by me or by other local partners. Everyone must be agreed on the process. I am keen to see businesses across the region and from further afield driving the deals, building on the strength of the regions—that is all regions, cross-border too—and boosting the local economy.

The Budget also recognised the need to see further improvements to our rail network, boosting connectivity and delivering better journeys on the newest trains.

[Wayne David (Caerphilly) (Lab)]

What possible justification can the Secretary of State give for the breaking of a promise to electrify the railway line—

[Wayne David]

What possible justification can the Secretary of State give for breaking the promise to electrify the railway line from Cardiff to Swansea?

[Alun Cairns]

I am grateful to the hon. Gentleman for asking that question, but he will be fully aware of the calls by the Public Accounts Committee, which is formed on a cross-party basis, for every element to be reviewed case by case for value for money. Projects that were not deemed to be value for money because there would be no improvement, such as the time to be delivered between Cardiff and Swansea, did not justify the additional sums of money made available. Under the current proposals, it will be the same trains travelling on the same track arriving at the same time as would have been the case under electrification that went the whole way to Swansea or stopped in Cardiff.

--- Later in debate ---

[Wayne David]

Does the Secretary of State agree that business confidence would be increased massively if businesses had some sort of idea of what the Government are trying to negotiate in the Brexit negotiations?

[Alun Cairns]

The hon. Gentleman will recognise that we are in negotiations, and he would not expect us to show our hand during that process. I would point to the significant inward investment—the UK is the leading place for attracting inward investment in Europe, which demonstrates the confidence business is showing in the economy—and the uplift in economic growth last quarter.

Oral Answers to Questions

Debate between Wayne David and Alun Cairns

Wednesday 6th September 2017 Commons Chamber

[Alun Cairns]

My hon. Friend has rightly recognised that scrapping the Severn tolls is a significant boost not only to the south Wales economy, but to the economy of the south-west of England. He welcomed it along with the South Wales chamber of commerce, Business West and many others. It seems that the only people who have not welcomed the scrapping of the Severn tolls are the Labour party and the Welsh Government.

[Wayne David (Caerphilly) (Lab)]

Further to the Secretary of State’s first answer, will he give a categorical commitment that all areas in Wales that are in receipt of European structural funds will continue to be eligible in the near future?

[Alun Cairns]

The UK shared prosperity fund can do even more because we will not have the same restrictions that the European Commission puts on European structural funds. It hardly makes sense that some of the most deprived parts of Wales are excluded from the European structural funds map as it stands because of European rules. The UK shared prosperity fund allows us to introduce a much more efficient and responsive scheme.