St David’s Day Debate

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Department: Wales Office
Thursday 28th February 2019

(5 years, 2 months ago)

Commons Chamber
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David T C Davies Portrait David T. C. Davies
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In fact, the hon. Member for Newport East was a member of the Welsh Affairs Committee when that first report was produced some nine years ago, and I think that it was at her instigation that the abolition went ahead. I pay full tribute to her for that.

As I was saying, the advantages that will accrue from the abolition of the tolls will be greatly increased if the Welsh Government now get on with building the M4 relief road. I know that was the policy—or it certainly seemed to be—of the Labour Government in the Welsh Assembly, and I am sure the Government here will want to support them in that.

To be slightly more parochial, the booming south Wales economy, for which my colleagues in government can take much of the credit, has meant that there is a demand for housing in south-east Wales, which is causing further problems. I hope Ministers will be doing everything possible to get the local authorities together to build the Chepstow bypass, which is also urgently needed.

The Select Committee on Welsh Affairs obviously cannot do much in the way of culture, media and sport, which is a devolved matter, but there are areas where we can offer support, not least in cheering on the national side as we all did on Saturday, but on S4C too. We have produced numerous reports to try to ensure that there are no threats to S4C’s budget.

I am also delighted that the Select Committee now enables anyone who wishes to do so to give evidence in Welsh. Debates can also now be held in Welsh in the Welsh Grand Committee, and I do not see why this cannot be extended further. I know that many Committee members would be quite supportive of it. There is no technical reason why we could not have debates on Welsh matters in Westminster Hall in Welsh, and I do not think there is any technological reason why a St David’s Day debate in this very Chamber could not also be held in the medium of Welsh. Perhaps we could look at that over the next few years.

We have looked on many occasions at the issue of powers for the Welsh Assembly. I was on the losing side of a referendum: I campaigned against the Welsh Assembly but quickly realised it would be utterly wrong to stand in the way of something the people of Wales had voted for. That is why I am glad the Conservative party, rather than trying to overturn the result of that referendum in 1997, embraced it and realised we would simply have to go along with what the Welsh people wanted, because that is democracy.

Albert Owen Portrait Albert Owen (Ynys Môn) (Lab)
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The hon. Gentleman must then be very upset that the Prime Minister in 1997, after the referendum, voted against the Government of Wales Act.

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Albert Owen Portrait Albert Owen (Ynys Môn) (Lab)
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It is a great pleasure, as always, to speak in this debate and I congratulate my hon. Friend the Member for Gower (Tonia Antoniazzi) on securing it. I have to say to Government Front Benchers that, after last year’s example of the Government taking the lead, I thought that we would be returning to where we were for many years, with the Government taking Wales day seriously and Welsh issues seriously, so that we would not have to make a bid to the Backbench Business Committee.

I want to say—as many have in the last few days; I make no apologies for saying it now—how great the victory on Saturday was by Wales against England in rugby. It united the country of Wales in a way we have not seen for a long time. The tactics were perfect; I wish the Prime Minister would act more like Warren Gatling than Eddie Jones when it comes to Brexit and mind games, and actually deliver.

Kevin Brennan Portrait Kevin Brennan
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My hon. Friend is right; that victory did unite the country. Does he wonder, as I do, whether it united the Ministers in the Wales Office? It would be interesting to know who the Under-Secretary of State, the hon. Member for Selby and Ainsty (Nigel Adams), was supporting last Saturday.

Albert Owen Portrait Albert Owen
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I will give Ministers the opportunity to speak for themselves, but I have had compliments from both of them on the way Wales played on Saturday; it absolutely united them.

I want to talk about energy, the north Wales economy and indeed Brexit, but I want to start by paying tribute to my late good friend Paul Flynn. As chairman of the Welsh parliamentary Labour party, I officially send our condolences to Sam and her family, and their friends from the Newport area, many of whom I know and who have told me great stories. Paul was a unique man; he was a great campaigner, as many people have said. I remember my other great late friend Rhodri Morgan—he was also of the class of ’87—saying to me, “If you haven’t had an argument with Paul, you’ve never really known Paul.” That was his nature; he was very astute at putting his arguments and not afraid to hold to his opinions. Those are my memories of Paul, and I will miss him very dearly.

The Secretary of State and others on the Treasury Bench will know that I have taken an interest in energy for many years, and I have taken this subject up because I believe that Wales has the great potential to be a world leader in the low-carbon economy and to lead the way on many projects. When I talk about a mixed rich energy diversity I am talking about renewables, nuclear and also energy efficiency. The innovation can come from Wales; we have a skill base there, we have natural resources and we have the potential to be a world leader.

I have written a booklet—you may have a copy after this debate, Madam Deputy Speaker—on resetting the energy button, because over the last few years we have not focused attention as we should. Prior to 2009 there was a great consensus across the House on a way forward and how we would reduce carbon emissions. I accept that the great world recession had an impact on that, but there has been disjointed policy from the UK Government since then. We have had reform Bills—electricity reform, market reform, retail reform—but we have not had a coherent policy. Wales is suffering as a consequence of that, because many major projects were earmarked for Wales, with lots of time and effort from the private sector, the Welsh Government and the UK Government, yet the end product has not materialised as it should have.

I have argued for many years that we need a proper formula, particularly for first-of-a-kind energy projects, for example in marine technology, because the auction system—the contracts for difference—that the Government have put in place does not help new forms of technology break through. We have great tidal resources around the coast of the UK and Wales—the west coast has some of the best tidal resources—and we need to work together to make things happen.

The Secretary of State has been very good with me in recent weeks and we are working together to get a new formula, but now we want not only a formula but an action plan. We want to be able to deliver on these projects, because we need to get the carbon emissions down and to meet our targets. We will not do that by prevaricating or by blaming the private sector for its financing. We need proper Government investment, in financial as well as policy terms. We should not leave this to the auctions; we need coherent planning.

I also want to talk about the job losses that we have seen in north Wales in recent times. I mentioned this yesterday, and I am grateful for the response that I received from the Under-Secretary of State for Wales, the hon. Member for Selby and Ainsty (Nigel Adams). Rahau Plastics in my constituency town of Amlwch is going through a consultation programme and could lose 104 jobs. It is an international company. It is a family company that is based predominantly in Bavaria, but it has global reach. It has been in Amlwch for 40 years, but it is consolidating the work that is done at that plant in central Europe.

There is a pattern developing, whereby international companies that have their bases across continental Europe and the United Kingdom are consolidating their workforces and their businesses in the European Union, because they know that the single market delivers. They are very polite about it and say that this is not simply down to Brexit, but I say to the Secretary of State that we cannot have companies based in countries such as Japan, which have direct agreements with the European Union, pulling out of Britain like this. Our workforce, our commitment and our end product are all good, but there is a fault, and that fault is the uncertainty of Brexit, pure and simple.

I want to move on to the North Wales growth bid. I congratulate the Secretary of State on working with the Welsh Government and local government on this important issue, but I want to say to him directly that there should be greater input by north Wales MPs. Simply leaving it to the councils is not good enough, because their resources are being cut and they have different responsibilities. As north Wales MPs, we have a strong mandate here and we want to work with the Treasury, the Government, the Welsh Government and local government to make this deal happen. This is not about being top-down; it is about working in partnership to deliver for the people of north Wales.

Following the suspension of the Wylfa Newydd power station, many of the projects are now in jeopardy. The Secretary of State and the Secretary of State for Business, Energy and Industrial Strategy are joining us for a meeting next week to discuss this. It is hugely important that the gap created by the suspension of that £20 billion project should be filled. It could be filled with quality jobs in renewable energy, in improving our rail infrastructure and in many more projects. I want to work with the Secretary of State in focusing on that, but I want a commitment from him that he will fight our corner in Whitehall and that we will get more money as a consequence of that suspended project. The private investment that has been lost needs to be topped up, and that could be done through the mechanism of the North Wales growth bid. The Welsh Economy and Transport Minister, Ken Skates, has said that he would match any moneys that come from the United Kingdom Government. We want to see action from this Government, not just warm words.

I understand the time constraint on this debate, but I want to mention Brexit very briefly. I have been arguing in this House for more than two years about the Irish dimension to Brexit and its effect on the port at Holyhead. The former Secretary of State just said, “Don’t worry, it will be simple”, but we are coming up to the eleventh hour and we are still arguing about the Irish backstop. If we treat one part of the United Kingdom—that is, Northern Ireland—differently and allow it to have alignment with the single market and the customs union, that will have an impact on Welsh ports as well as on ports in Scotland and England. Those countries will lose out as a consequence.

I want this message to go out from Wales to the Prime Minister: look at what is happening in Wales, listen to the Welsh Assembly and to Welsh MPs, do not be blinkered and do not pander to one side of your party. Start speaking up for Wales, because it is an integral part of the United Kingdom. We are pioneers and leaders, and I am proud to speak in this debate.

None Portrait Several hon. Members rose—
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Alun Cairns Portrait The Secretary of State for Wales (Alun Cairns)
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I am grateful to the hon. Member for Gower (Tonia Antoniazzi) for securing this debate, and for the support of the Backbench Business Committee in making time available for it. It has been a wide-ranging debate, as was pointed out by the shadow Secretary of State, the hon. Member for Neath (Christina Rees). Unfortunately, I will not have time in the time permitted to respond to each and every point made, but if I do not have the opportunity to respond to them, I will happily continue to engage positively with colleagues in all parts of the House on the issues they have raised.

Among some disagreements, there has without doubt been unity and lots of agreement on a number of issues, but I want to underline the comments by every Member of this House about our friend and former colleague Paul Flynn, the past Member for Newport West. I had the privilege of knowing him before I was elected to this House, and I remember that he was particularly supportive of me at a difficult time. My hon. Friend the Member for Monmouth (David T. C. Davies) pointed out his exceptional constituency work, and I can speak about that from experience because my parents-in-law live in his constituency. As I mentioned yesterday, I think there is a significant gap on the Labour Benches, and Paul will be missed. We pay tribute to him, and we pay our respects to his family.

I would also underline the comments that have been made about Steffan Lewis, the former Plaid Cymru Assembly Member. Without doubt, he was an exceptionally bright talent. He had a significant influence in his short political career, and I think Wales will miss him and the influence he brought to bear during that time.

The rugby also brought significant agreement across the House. As my right hon. Friends the Members for Preseli Pembrokeshire (Stephen Crabb) and for Clwyd West (Mr Jones) pointed out, it is a great time to be Welsh, particularly in relation to the rugby that took place at the weekend.

Listening to this wide-ranging debate, it is hard to believe that in 2010 Wales had a formula that underfunded its needs, a legislative consent order model that meant we did not have a full law-making Assembly and a rail franchise that was not fit for purpose—we did not have a single mile of electrified rail track—while unemployment was rising, economic inactivity rates were stubbornly high and manufacturing jobs had gone into quite a sharp decline.

Now, however, I would point out that Wales has a fair funding settlement—there has been enhancement on the funding settlement—and we now have a full law-making Assembly that is to become a Senedd. Major upgrades of the railways are taking place, with investment both in south Wales and in north Wales, and a will and a commitment to open new stations. Unemployment is at record low levels, and economic inactivity rates that have been stubbornly high for decades are now better than England’s. A remarkable transformation has taken place in the Welsh economy, and the manufacturing sector is growing faster than in any other part of the UK. Without doubt, one of my proudest moments has been the abolition of the Severn tolls, so people do not have to pay to come into Wales any more, which provides a great opportunity to bind together the United Kingdom.

Albert Owen Portrait Albert Owen
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The figures for unemployment and employment levels that the Secretary of State reads out are a credit to the Welsh Government, but they are small comfort to people facing job cuts right now, and I think his tone should reflect that. On the devolving of powers, will he answer the question asked by my right hon. Friend the Member for Delyn (David Hanson)? Teachers up and down the country, like local authorities, are asking: has the money allocated through the teachers formula gone to Wales and is it going to those local authorities?

Alun Cairns Portrait Alun Cairns
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My tone is certainly not vitriolic in any way. I am seeking to contrast the situation in 2010 and the good place Wales is now in because of the joint work with the Welsh Government. I will come on to that as the second theme I am seeking to develop. I pay tribute to the hon. Gentleman for the constructive way in which he works in relation to the challenges and issues that his constituency faces. On the specific point he makes about teachers’ pensions and so on, the Chief Secretary to the Treasury wrote to the Welsh Government on 11 February to clarify that additional resource is being made available. How the Welsh Government distribute that is a matter for them, but I hope that answers many of the questions that have been asked.

Whether it is “Lonely Planet” highlighting north Wales as one of the best places to visit, “The Rough Guide” pointing to Wales as one of the most beautiful countries or the Eurobarometer poll pointing out that Cardiff is one of the best cities to live in across Europe, Wales is in a strong position. Wales is a beautiful location, and it has a lot to offer to the United Kingdom and to the rest of Europe and beyond. In the spirit of my right hon. Friends the Members for Clwyd West and for Preseli Pembrokeshire, I want to celebrate what Wales has to offer. We should bear in mind that we are talking to international investors. Such people will be watching and reading this debate, and I am proud of what we have achieved and of the potential and the opportunity in front of us.