Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 25th April 2012 Commons Chamber

[Karl MᶜCartney (Lincoln) (Con)]

3. What discussions she has had with ministerial colleagues and others on marketing Wales as a destination for foreign business investment.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

I have regular discussions with ministerial colleagues and others on marketing Wales as a destination for foreign business investment. The recent Select Committee on Welsh Affairs report on inward investment in Wales highlighted a number of important issues, and we are committed to closer joint working with the Welsh Government to deliver more inward investment to Wales.

[Stuart Andrew]

I am grateful to my right hon. Friend for that answer. One of the best ways to improve foreign investment in Wales is for the UK and Welsh Governments to work more closely together. Does she regret the apparent unwillingness of the Welsh Business Minister to do just that?

[Mrs Gillan]

As the Welsh Affairs Committee has made clear in the inquiry into foreign direct investment, co-operation between both Governments is considered essential to marketing Wales and for potential investors. However, as economic development is devolved and led by the Labour Government in Wales, I share my hon. Friend’s disappointment that the Business Minister did not give evidence to the Committee. I hope that we can develop a more mature attitude, as FDI projects in Wales have diminished over the years and we need to get them back up, so that we are competing effectively.

[Karl MᶜCartney]

I thank my right hon. Friend for her earlier answer. Does she agree that it is right to explore investment opportunities in emerging markets? There are markets close to home, such as in the Commonwealth of Nations, which consists of 54 countries and has a population of 3.5 billion-plus, that also offer important investment potential.

[Mrs Gillan]

The Prime Minister himself has said that he wants

“to link Britain up to the fastest growing parts of the world, because we need to trade and export our way out of our economic difficulties.”

We inherited those from the previous Government. That is why I have taken such a tremendous interest in this area and why I am very pleased that we have now joined up UK Trade & Investment to the Welsh Government. We have offered at least one of UKTI’s investment advisers to work in the Welsh Government offices in Treforest and for there to be two-way secondees between UKTI and the Welsh Government. That is real progress and it shows that we can get our two Governments working together in the interests of Wales.

[Ann Clwyd (Cynon Valley) (Lab)]

As the Secretary of State knows, good air transport links are essential in attracting business investment to Wales. What discussions has she had with the First Minister and the Welsh Government about improving the links between Cardiff airport and the rest of the world?

[Mrs Gillan]

As the right hon. Lady knows, I have constant discussions with the First Minister and the Welsh Government, as does the Under-Secretary. We have certainly discussed the links and there has been some discussion of Cardiff airport. I am pleased to say that I have invited the owners of the airport to meet me shortly, because I have been concerned about some of the reports I have heard in the press. We should be trying to talk Cardiff airport up, not down.

[Nia Griffith (Llanelli) (Lab)]

I certainly welcome the announcement by the Labour Welsh Government that Tata Steel will invest £800 million in Wales, but as the Secretary of State will know Tata bosses have repeatedly said that the prices they have to pay for energy in the UK are simply not competitive when compared with what industry pays elsewhere. What discussions has she had with the Energy Secretary and energy companies to secure a better deal on energy prices for heavy industry to provide an incentive for companies such as Tata to invest in Wales?

[Mrs Gillan]

One of the first things I did when I was appointed was visit Tata Steel, and I took the Business Secretary, Vince Cable, with me to discuss energy prices. The hon. Lady should know that all the Departments have been focused on the energy-intensive industries because we want to ensure that there are good manufacturing jobs in the future, not just in Wales but elsewhere in the UK. I have read the press release from the Welsh Government and the First Minister and he says that he was told at a meeting in India that £800 million has been approved over the next five years for investment in Tata Steel in Wales. I look forward to seeing the detail, because it seems to be a general announcement at this stage without too much detail attached to it.

[Mr Speaker]

The Secretary of State was referring to the right hon. Member for Twickenham. We do not name people in this place.

--- Later in debate ---

[Nick Smith (Blaenau Gwent) (Lab)]

4. What assessment she has made of the treatment of capital allowances in enterprise zones in Wales; and if she will make a statement.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

The Chancellor announced funding for enhanced capital allowances in the Deeside enterprise zone in the Budget in addition to the money already provided for enterprise zones in Wales. We are committed to looking at how we can provide these allowances elsewhere but the Welsh Government must develop strong, detailed and robust business cases.

[Nick Smith]

I thank the Secretary of State for her interest in the Blaenau Gwent enterprise zone. Plans for a motor industry complex there are now at a critical juncture. We need to know if capital allowances can be delivered or if other tax treatments are a better prospect. May I press her for a meeting between developers and the Chief Secretary to the Treasury, so that we can thrash out a solution?

[Mrs Gillan]

The hon. Gentleman has worked tirelessly for his constituency to develop these proposals for the Ebbw Vale enterprise zone, and I really do congratulate him on that. We have met on other occasions and I have written to him again today, saying that I am very willing to try to secure a meeting with the Chief Secretary to the Treasury, but without a business case the Treasury cannot make any decisions on further enhanced capital allowances. I urge the hon. Gentleman to discuss the subject with the Welsh Government as well as with our Government.

[Mr Mark Williams (Ceredigion) (LD)]

5. What discussions she has had with ministerial colleagues and others on funding for broadband technology in Wales.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

6. What recent discussions she has had with ministerial colleagues on encouraging economic growth in Wales.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

Economic growth is a key priority for this Government and I have regular discussions with ministerial colleagues on ways to encourage economic growth in Wales. Yesterday I met the business advisory group and heard directly from members how this Government’s growth policies are helping businesses in Wales to face the current economic challenges.

[Andrew Selous]

Does the Secretary of State agree that the fact that the recent Budget is taking 95,000 people out of tax altogether in Wales is a big boost for business in Wales, as more people will have greater spending power and find it worth their while to be in work?

[Mrs Gillan]

I agree entirely with my hon. Friend. It must be very good for those people whom we have taken out of tax altogether and the lower paid workers who will benefit from our tax changes, because it will put money directly back in their pockets rather better than the Welsh Labour Government down in Cardiff Bay, under whose auspices council tax has doubled in Wales.

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

The Budget included a clear framework for reducing localised pay in the public sector. Considering that there is a direct link between money in people’s pockets and spending in the local economy, how will depressing pay encourage economic growth in the poorest parts of the British state?

[Mrs Gillan]

When it comes to local pay, our aim is to create a more flexible labour market that is more responsive to the challenging economic conditions we currently face. We want to create more private sector growth and, as a consequence, wealth in Wales and across the UK.

[Alun Michael (Cardiff South and Penarth) (Lab/Co-op)]

If the Secretary of State thinks this Government are interested in growth, she is living in cloud cuckoo land. Is she not keeping up with today’s news that shows that the Chancellor’s obsessive intention of cutting too deep and too fast is taking us back into recession?

[Mrs Gillan]

No. I have to say that today’s news is disappointing but not totally unexpected. Britain cannot be immune to what is happening on our doorstep. For example, Italy, Holland, Ireland, Belgium and Portugal are already in recession. But let us remember that since the coalition took office in 2010, more than 630,000 private sector jobs have been created, more than outstripping job losses in the public sector, and private sector employment in Wales rose by 12,000 between quarter 3 in 2010 and quarter 3 in 2011.

[Huw Irranca-Davies (Ogmore) (Lab)]

7. What recent progress has been made on electrification of the south Wales valley railways; and if she will make a statement.

--- Later in debate ---

[Gavin Williamson (South Staffordshire) (Con)]

11. What recent discussions she has had with ministerial colleagues and others on the aerospace industry in Wales.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

I have regular discussions with ministerial colleagues and other organisations on a range of issues, including the aerospace industry in Wales.

[Gavin Williamson]

Does the Secretary of State agree that, while the UK Government have taken a lead in establishing enterprise zones, the onus is now on the Welsh Government to ensure that their enterprise zone for the aerospace industry in St Athan is a success?

[Mrs Gillan]

My hon. Friend is absolutely right. As far as enterprise zones are concerned, a great deal depends on what the Labour Welsh Government will do, because we have capital allowances for only one enterprise zone, which is already in Deeside. The enterprise zone to which he refers will be crucial to the UK and will secure work on the next generation of aircraft, because some 27,000 large aircraft, worth $3 trillion, will be needed over the next 20 years, around 7,000 new helicopters will be required within the next decade and there is a huge potential future market in unmanned air vehicles, and I want us to benefit from that demand in the aerospace business in Wales.

[Ian Lucas (Wrexham) (Lab)]

Is it not the case that the success of the UK aerospace industry is due to government and industry working together—[Interruption]—and that saying that business succeeds because government gets out of the way is arrant nonsense?

[Mrs Gillan]

Over this noise, Mr Speaker, I think the hon. Gentleman is suggesting that government should get out of the way of business. Indeed, that is exactly what this Government are doing, with the red tape challenge, by reducing the bureaucracy that the previous Labour Government imposed on our industries, and by reducing the rate of corporation tax so that our business environment can be one of the most competitive in the G20.

[Mrs Madeleine Moon (Bridgend) (Lab)]

13. What assessment she has made of the implications of the Budget for women in Wales.

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

Last month’s Budget was one of fairness and values. Although we had to make some difficult decisions, we are committed to ensuring that women all over the UK play a full part in the economic recovery.

[Mrs Moon]

Women in Wales are suffering and struggling with rising food prices, the rising cost of living and the rising costs of child care. In the most recent quarter, 4,000 additional women became unemployed. How many women in Wales will benefit from the reduction in taxation on high-level earners from 50% to 45%? Will that benefit women in Wales?

[Mrs Gillan]

Despite the recession, the employment rate for women remains historically high, at 65.3% now compared with 53% in 1971. Employment has fallen more sharply among men during the recession, so frankly it will be expected to rise more quickly as the economy recovers. This is, however, the fourth consecutive set of figures to show employment and economic activity rising in Wales, which I would have thought the hon. Lady would welcome.

The Prime Minister was asked—