Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 19th October 2016 Commons Chamber

[Alberto Costa (South Leicestershire) (Con)]

1. What recent discussions he has had with the Welsh Government on future infrastructure investment in Wales.

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

I am sure the whole House will join me in marking the 50th anniversary of the Aberfan tragedy this Friday. That event shocked not just Wales but the whole of the country and the wider world. I am sure colleagues across the House will pay tribute to the bravery and strong community ties that pulled the people of Aberfan through the immediate aftermath and provided so much support in the months and years that followed.

Wales is benefiting from millions of pounds of UK investment across the country. We are modernising our rail infrastructure, investing in the North Wales prison, and providing significant funding and support to improve internet speeds. This is a clear demonstration of the Government’s commitment to delivering improvements in infrastructure in all corners of Wales.

[Alberto Costa]

Wales receives its funding from the Barnett bloc, but does my right hon. Friend recognise that the UK Government have a part to play in UK infrastructure so that it meets the strategic need in the UK as well as in Wales?

[Alun Cairns]

My hon. Friend raises an important point. He rightly underlines the Barnett arrangements, and we were pleased to introduce a funding floor that provides Wales with £115 for every £100 that is spent in England. In addition, we have the electrification of the Great Western main line, North Wales prison is a significant project, and we have broadband roll-out. After all, we are interconnected economies, and the Government are determined to do the best for the whole of the UK.

[Ian C. Lucas (Wrexham) (Lab)]

15. May I first associate myself with the right hon. Gentleman’s appropriate remarks concerning Aberfan? I am pleased to hear the emphasis on infrastructure interconnectivity. The Minister will know that the excellent north Wales growth bid—supported by business, cross-party politicians and local authorities in north Wales—needs financial support from the UK Government. Will the UK Government give financial support to the growth bid?

[Alun Cairns]

I pay tribute to the hon. Gentleman for the work he is doing cross-border with the Mersey Dee Alliance and the all-party group on Mersey Dee North Wales. That resonates with our policy to develop a growth deal that works on a cross-border basis. We are working with those who are developing the north Wales growth deal. We are in negotiations on that. We have recently received the Growth Track 360 bid, and we will analyse that in due course. We are keen to work together, and with the Welsh Government.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

10. As my right hon. Friend knows, train passengers from and to my constituency use part of the Great Western railway line. When will the new intercity express trains for the Great Western rail line be operational?

[Alun Cairns]

My hon. Friend highlights the investment in the Great Western main line, and much attention is rightly drawn to the infrastructure of the electrification itself. However, it is fair to say that, as soon as we have electrified as far as Didcot or Swindon, the new trains will be operational, so his constituents, my constituents and those in Wales and the south-west in general will benefit from modern trains well before the infrastructure has been completed.

[Susan Elan Jones (Clwyd South) (Lab)]

Roads are critical in infrastructural investment—roads on both sides of the border. What conversations has the right hon. Gentleman had with the Welsh Government about the A5/A483, which goes from Oswestry towards the Wrexham area, given the particular road safety problems in the community of Chirk?

[Alun Cairns]

The hon. Lady raises an important point. It is something that has crossed the discussions over the north Wales growth deal, and it underlines the interconnectivity of the region she mentions with Manchester, Merseyside and north Wales. We are working closely with the Welsh Government on their infrastructure plan and the national infrastructure plans for the whole of the United Kingdom. It is important that they dovetail appropriately.

[Dr James Davies (Vale of Clwyd) (Con)]

12. The Minister will be aware of a range of infrastructure improvement proposals in the north Wales and Mersey Dee taskforce’s Growth Track 360 plan. Could he advise on the merits of seeking funding via a north Wales growth bid supported by cross-border partners to accelerate the delivery of those elements of the plan that are priorities in the short term, and would he help facilitate that?

[Alun Cairns]

I pay tribute to my hon. Friend for the work he has done on this important issue. I think he drew attention to it at one of the first meetings immediately after the general election, and that started the discussions that have led to the Growth Track 360 proposal. There are growth elements and transport infrastructure elements, and it is important that we ensure that those come together for the benefit of the whole region. I am happy to work with him and with the Department for Transport as we approach the control period 6 considerations that will take place in due course.

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

I, too, associate my party and myself with the Secretary of State’s comments on the Aberfan disaster.

The Treasury aims to pool local government pension schemes in Wales and England to create wealth funds to invest in infrastructure, with each fund containing accumulated assets of £25 billion. Combined Welsh assets amount to £13 billion, meaning that if the Treasury has its way, Welsh funds will be swallowed up by a cross-border pool. Will the Secretary of State demand a specific Welsh wealth fund so that the contributions of Welsh local government workers are used to invest in infrastructure projects in Wales?

[Alun Cairns]

The hon. Gentleman raises a fairly technical area of policy. Appropriate economies of scale are involved in this. I am happy to discuss the details with him. The Welsh Government have made their views clear. However, it is not only about “Welsh money for Wales”—which, on the face of it, would sound good—but about having the economies of scale such that we can access funding elsewhere as well. Therefore, it is not necessarily the right thing, but I am certainly not closed to the idea.

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

2. What recent discussions he has had with the Chancellor of the Exchequer on whether funding for the Swansea bay city deal will be included in the autumn statement.

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[Margaret Greenwood (Wirral West) (Lab)]

4. What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the Swansea bay tidal lagoon.

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

I remain in close contact with my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy on the proposed lagoon at Swansea bay. This is an exciting project for Wales. I am due to meet Charles Hendry tomorrow to gain an update on the progress of the independent review, and I look forward to reading the findings when he reports later this autumn.

[Margaret Greenwood]

Last week, Sheffield Forgemasters and a host of other industrial companies in the northern powerhouse urged Charles Hendry to back a new tidal lagoon project, so I welcome the Secretary of State’s comments. If the Government will not listen to Wales, will they listen to the industrial north and finally get on with the Swansea bay tidal lagoon project ?

[Alun Cairns]

I recognise the hon. Lady’s interest in all things environmental, but Charles Hendry’s review has been seen as a positive intervention. The approach he has taken has been welcomed, as has been pointed out, not only by the lagoon company, local authorities and politicians, but by the business community in south Wales and across the northern powerhouse. We recognise the contribution that it could make, and we are looking forward to his judgment.

[Edward Argar (Charnwood) (Con)]

While it is important to take the findings of the Hendry review into account, will the Secretary of State press for progress on this exciting project as soon as it reports? The project not only has the potential to deliver clean energy, but will continue to build on the success, vibrancy and ambition that characterises Swansea and Wales.

[Alun Cairns]

My hon. Friend, like me, looks forward to the Charles Hendry report. There is no doubt that, as a test project, it has great potential for Swansea bay, but he, like me, has an obligation to the taxpayer to ensure that it works for consumers and taxpayers, and that it represents good value for money for all concerned.

[Carolyn Harris (Swansea East) (Lab)]

13. Having taken a bloody nose for Hinkley and a black eye for fracking, is it not about time that this Government took an energy decision that enjoys the full support of this House and of the population at large? Why hold up any further the British-made, British-owned tidal lagoon projects that could change the fortunes not only of Wales, but of manufacturing businesses across the country?

[Alun Cairns]

The hon. Lady and I agree that we would like something like that to be developed and to go ahead for the prospects and opportunities it will provide, but we have an obligation to the taxpayer: we have to ensure that it provides value for money. Only in recent weeks, the hon. Lady and her colleagues have complained about the cost of energy for Tata and other energy-intensive industries. It is important that we generate energy in a cost-effective way that suits consumers as well as taxpayers.

[Paul Flynn (Newport West) (Lab)]

5. What steps he is taking to encourage increased tourism to Wales.

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[Alex Cunningham (Stockton North) (Lab)]

6. What steps the Government are taking to support the steel industry in Wales.

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

I am in regular contact with my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy, the First Minister and the Welsh Minister for the Economy. We have not lost focus while these issues have been out of the headlines. The Government leave no stone unturned in supporting the steel sector.

[Alex Cunningham]

What assurances can the Secretary of State give that, in the event of the completion of a joint venture by Tata Strip Products and ThyssenKrupp, commitments will be made on jobs, investment and the continuation of primary steel making at Port Talbot and across Wales?

[Alun Cairns]

It is in the UK’s strategic interests to maintain a steel-making capacity, and so quite obviously to maintain that at Port Talbot. The Government stand ready and waiting to support any bidder. It is a matter for Tata as to whether it pursues the joint venture. We are maintaining a relationship with Tata and other potential bidders that were in discussions earlier this year. We are keen to maintain a sustainable future.

[Wayne David (Caerphilly) (Lab)]

Welsh steel is obviously of the highest quality, and I hope that when Heathrow airport is expanded Welsh steel will be used. In that sense, will the Secretary of State have a word with the Prime Minister to ensure that she stops faffing around on Heathrow expansion and that we have a positive decision as early as possible?

[Alun Cairns]

The hon. Gentleman tempts me, but he knows that that decision will be coming soon. He makes an important point about the use of steel in infrastructure projects. The UK Government have already changed procurement rules, making it easier for British steel to be used in contracts. For example, Crossrail, Europe’s largest civil engineering scheme, uses almost entirely British steel.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

As the representative for Merthyr Tydfil and Rhymney—[Interruption.]

[Gerald Jones]

Thank you, Mr Speaker. As the representative for Merthyr Tydfil and Rhymney, I too would like to associate myself with the comments of the Secretary of State and the shadow Secretary of State, my hon. Friend the Member for Cardiff Central (Jo Stevens), in relation to the 50th anniversary of the Aberfan disaster, an unimaginable loss for the families and, indeed, the whole community.

One major challenge—if not the major challenge—facing the Welsh steel industry is that its energy costs are far higher than those of our competitors. Despite warm words, little action has been taken. What action is the Secretary of State or the Government taking to bring down energy costs faced by energy-intensive industries?

[Alun Cairns]

I welcome the hon. Gentleman and his hon. Friend the shadow Secretary of State to their positions. He makes an important point on steel-making capacity and energy costs. He will be well aware that the energy-intensive industry package the Government have brought forward responded to the demands from the industry and from Tata specifically. We have reduced energy costs to the steel sector by £109 million, which has been welcomed and has put the sector in a much stronger position, with a turnaround in finance from a loss of £64 million to an operating profit of £95 million.

[Louise Haigh (Sheffield, Heeley) (Lab)]

7. What discussions he has had with the Welsh Government on the Arriva Trains franchise renewal.