Commission on Devolution in Wales

Cheryl Gillan Excerpts

Tuesday 11th October 2011 Written Statements

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

I informed the House on 19 July that the Government would establish an independent Commission on Devolution in Wales this autumn to review the present financial and constitutional arrangements in Wales. I said that I would make further announcements after recess.

I am now able to inform the House that the Commission will be chaired by Paul Silk, Clerk to the National Assembly for Wales from 2001 to 2007 and a former Clerk in this House. He will be joined on the Commission by two independent members. They are:

Dyfrig John CBE, Chairman of the Principality Building Society;

and

Professor Noel Lloyd CBE, a former Vice-Chancellor and Principal of Aberystwyth University.

In addition, there will be four party political members who are each nominated by one of the four political parties in the National Assembly for Wales. They are:

Professor Nick Bourne (Welsh Conservatives nominee);

Sue Essex (Welsh Labour nominee);

Rob Humphreys (Welsh Liberal Democrats nominee); and

Dr Eurfyl ap Gwilym (Plaid Cymru nominee).

The Commission members have, between them, extensive expertise and experience in financial and constitutional matters in relation to Wales. I expect the Commission to consult widely on its proposals, and to make recommendations likely to have a wide degree of support.

The terms of reference for the Commission reflect the fact that it will carry out its work in two parts. In part I, the Commission will look at the case for the devolution of fiscal powers to the National Assembly for Wales, and recommend a package of fiscal powers that would improve the financial accountability of the Assembly, and which are consistent with the United Kingdom’s fiscal objectives.

In part II the Commission will look at the powers of the Assembly, and recommend modifications to improve the present constitutional arrangements.

The Government worked closely with the Welsh Government and all the parties in the Assembly in drafting the terms of reference. The full terms of reference for the Commission are attached at annex A, and I have also placed copies in the Library of the House.

The Commission will report to me and, in relation to part I, also to the Chancellor of the Exchequer. It will be supported in its work by a small secretariat of civil servants drawn from the United Kingdom Government and the Welsh Government. It will make every effort to report on its recommendations in relation to part I in the autumn of 2012, and on part II during 2013.

Commission on Devolution in Wales—Terms of Reference

An independent Commission will be established to review the present financial and constitutional arrangements in Wales. It will carry out its work in two parts:

Part I: financial accountability

To review the case for the devolution of fiscal powers to the National Assembly for Wales and to recommend a package of powers that would improve the financial accountability of the Assembly, which are consistent with the United Kingdom’s fiscal objectives and are likely to have a wide degree of support.

Part II: powers of the National Assembly for Wales

To review the powers of the National Assembly for Wales in the light of experience and to recommend modifications to the present constitutional arrangements that would enable the United Kingdom Parliament and the National Assembly for Wales to better serve the people of Wales.

In undertaking part I, the Commission should:

provide independent advice on the case for improving the financial accountability of the National Assembly for Wales consistent with the fiscal and constitutional framework of the United Kingdom;

consult widely on a package of fiscal powers which would improve the financial accountability of the National Assembly for Wales;

make recommendations on whether a package of fiscal powers could be devolved to the National Assembly for Wales which are likely to have a wide degree of support; and

consider and make recommendations on how best to resolve the legal and practical implementation issues from devolving a package of fiscal powers, including consistency within the United Kingdom.

Part I will be completed before work on part II begins.

In undertaking part II, the Commission should:

examine the powers of the National Assembly for Wales, and in particular:

the boundary between what is devolved and non-devolved;

whether modifications to the boundary should be made at this stage; and

any cross-border implications of such modifications;

consult widely on any proposed modifications to the current boundary;

make recommendations on any modifications to the settlement likely to have a wide degree of support; and

consider and make recommendations on how best to resolve the legal and practical implementation issues from those modifications.

The Commission will not consider, in part I, the Holtham Commission’s proposals for funding reform in Wales, including Welsh Ministers’ existing borrowing powers, which are being dealt with through a separate bilateral process between the United Kingdom Government and the Welsh Government; and, in part II, the structure of the National Assembly for Wales, including issues relating to the election of Assembly Members.

Incident at Gleision Colliery

Cheryl Gillan Excerpts

Monday 10th October 2011 Written Statements

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

On Thursday 17 September, a retaining wall holding back a body of water collapsed in Taren Gleision drift mine near Pontardawe in the Swansea Valley. Of the seven men working in the mine three men were able to escape, but all of the remaining four miners tragically died. The four trapped miners were named as Charles Breslin, 62; David Powell, 50; and Garry Jenkins, 39, from the Swansea Valley; and Phillip Hill, 45, of Neath.

It is a distressing time for the families and friends of those who lost their lives and I send my sincere condolences to them. I would also like to pay tribute to the efforts of the whole community and the organisations, including the Red Cross and the WRVS, who provided support to all concerned during what were very difficult days.

The emergency services and mine rescue workers involved in the search and rescue operation carried out their work in incredibly difficult and dangerous circumstances. We are deeply indebted to them for their tireless determination and dedication.

The Cabinet Office Civil Contingencies Secretariat provided full co-ordination in the immediate aftermath ensuring all parts of Government with a role to play were fully appraised of the situation on the ground and of any actions that needed to be taken locally and centrally. We worked closely with the Welsh Government in the initial stages of the operation. The right hon. Member for Neath (Mr Hain) was present as events unfolded and my office worked closely with him in the immediate aftermath.

The South Wales branch of the National Union of Mineworkers set up the Swansea Valley Miners Appeal Fund as a trust to administer the donations to support the families of those involved in the disaster. His Royal Highness, The Prince of Wales, has agreed to be the Royal patron of the fund. The Wales Office worked with the Charity Commission to assist the fund in gaining its charitable status, which was confirmed on 26 September. Until this point the Wales Office has agreed to reimburse the appeal fund for the funding it did not receive from gift aid contributions while charitable status was being sought.

South Wales police are currently the primary lead for the investigation and are working closely with the Health and Safety Executive. The gathering of evidence has been extremely difficult and dangerous. This evidence will need to be reviewed and the Government will continue to do all they can to facilitate a full investigation.

Commission on Devolution in Wales

Cheryl Gillan Excerpts

Tuesday 19th July 2011 Written Statements

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

The coalition’s programme for government includes a commitment to

“establish a process similar to the Calman Commission for the Welsh Assembly”

and the Government’s proposals are now taking shape. I am pleased to inform the House of our plans so far.

A key strength of the Calman Commission was its consensual approach, and the Government are committed to establish a similar approach in Wales. With this in mind we have worked with the Welsh Government and all parties in the Assembly to reach a broad consensus on how we move forward.

An independent commission will be established in the autumn to look at the financial accountability of the Welsh Government and the National Assembly for Wales. The commission will examine issues of fiscal devolution and accountability in Wales and will focus on building consensus. It will take into consideration the work of the Holtham commission and will make every effort to report on its recommendations in the autumn of 2012.

After the commission has reported and the Government have considered its proposals, the commission will look at the constitutional settlement in Wales in the light of experience. The commission will aim to report its findings in 2013.

Work will continue between the UK Government and the Welsh Government over the summer, and I will look to make further announcements on the process after recess.

The Government are committed to considering all aspects of the Holtham commission’s reports. Separate discussions will continue between the UK Government and the Welsh Government on Holtham’s proposals for funding reform for Wales and they will be extended to include the operation of existing borrowing powers.

Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 29th June 2011 Commons Chamber

[Paul Murphy (Torfaen) (Lab)]

1. What recent discussions she has had with the First Minister on the remit of a commission on devolution and funding for Wales.

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

The Government are committed to a Calman-like process for Wales and will be putting forward proposals. I have discussed the issue with the First Minister, and will be continuing to have discussions with relevant colleagues and of course the First Minister.

[Paul Murphy]

The Secretary of State will know that the Northern Ireland Executive can borrow money and the Scottish Government will soon be able to borrow money, but the Welsh Government cannot. With the cutback in capital spending on schools and hospitals, is it not now time for the right hon. Lady to enter into immediate negotiations with the Welsh Government and the First Minister so that the Welsh Government can also borrow money?

[Mrs Gillan]

I thank the right hon. Gentleman for that question. He is effectively asking why Wales is the only home nation without borrowing powers. It is fair to say that the new borrowing powers for Scottish Ministers, which are set out in the Scotland Bill, will not take effect until 2015-16, which is in line with our commitment not to change the system until stabilisation of public finances. May I make it clear that we are not ruling borrowing powers for the Welsh Government in or out at this stage.

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

The recent Labour Government amply demonstrated their enthusiasm for taxing and borrowing. Does my right hon. Friend think that it would be wise to allow the Welsh Assembly to follow that example?

[Mrs Gillan]

I am grateful to my hon. Friend for that question. [Hon. Members: “No, you’re not.”] Despite the laughter from the Opposition, I am grateful to him. However, I cannot be drawn on this, and as I answered straightforwardly, we are not ruling it in or out at this stage. I want to have those discussions with the First Minister and other colleagues for the simple reason that many commentators, including the First Minister, are unsure of exactly what powers the Welsh Government would like to have.

As with the Calman process, it is right that we try to reach consensus on this and move forward. It is far too important a matter to be rushed or dealt with in a cavalier fashion.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

Very important though borrowing powers are, would the right hon. Lady assure the House that the remit of the Calman-style commission will be far broader than matters financial, given the excellent work already carried out by the Holtham commission?

[Mrs Gillan]

I am committed to establishing a process for the Assembly that is similar to that set out by the Calman commission. I have made it clear that we intend to review the financing arrangements for Welsh devolution. I must repeat, however, that I think that this matter is far too important to Wales, and far too important a subject matter, to be rushed or not to be discussed fully. I am seeing the First Minister on Monday to take forward our discussions and I do not want to pre-empt them by setting any parameters.

[Mr Llwyd]

No doubt the right hon. Lady would not wish to pre-empt any decision, but in a co-operative spirit, may I suggest that matters administrative and constitutional should be considered? I am thinking of the possibility of devolving police and justice powers to Wales, for which there is a huge amount of support throughout Wales. On the vital issue of broadcasting, it is high time that Wales had control of its own broadcasting; S4C would not be in its current position if there were such control.

[Mrs Gillan]

The right hon. Gentleman is trying to lay out his own manifesto and his party’s position with clarity, but that is not how we want to take matters forward. May I make it clear that I know how important S4C is to the Welsh language and culture? We have reached an arrangement on it, and I assure him that I will always look to the interests of S4C because I know how important a part it is of Wales’s culture.

[Mr Mark Williams (Ceredigion) (LD)]

2. What recent discussions she has had with the First Minister on the devolution of planning decisions for electricity projects with a generating capacity greater than 50 megawatts.

--- Later in debate ---

[Guto Bebb (Aberconwy) (Con)]

3. What recent discussions she has had with the First Minister on the establishment of enterprise zones in Wales; and if she will make a statement.

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

I had initial discussions with the First Minister on the day of the Budget, following the announcement of the introduction of enterprise zones in England. I have also written making clear my commitment to work with the Welsh Government to establish enterprise zones in Wales. I am therefore delighted that the First Minister has now confirmed that Wales will benefit from enterprise zones. Having zones in Wales will provide a much-needed boost to businesses and make Wales more attractive to investors.

[Guto Bebb]

I thank the Secretary of State for her answer, which is most welcome. Conwy county corporate plan and the Wales spatial plan have identified Llandudno junction in my constituency as an area that is ready for growth. In my view, an enterprise zone at Llandudno junction would move from a potential for growth to real growth and create real employment in my constituency. What we need to see is co-operation between Westminster and the Assembly to ensure that that happens.

[Mrs Gillan]

I agree entirely with my hon. Friend, who is a great champion for Aberconwy and has mentioned this matter to me before. I would welcome meetings with any Welsh Members of Parliament who think that their constituency would be an ideal location for an enterprise zone. Indeed, I have already met some Members who have made such representations.

I encourage my hon. Friend to make contact with the Minister for Business, Enterprise and Technology in the Welsh Assembly. We were all surprised and disappointed that she is not yet able to agree to appear before the Welsh Affairs Committee. I encourage her to rethink that decision and to work together with the Wales Office in a spirit of co-operation, because that would be in the interests of Welsh business.

[Several hon. Members]

rose—

[Nia Griffith (Llanelli) (Lab)]

Given the Secretary of State’s discussions about enterprise zones with the First Minister and other Welsh Assembly Ministers, does she accept that whatever we do on the ground in Wales, and whatever stimulus the Welsh Assembly can provide, we still need a proper fiscal stimulus from her colleagues in the Cabinet here? What discussions has she had with her colleagues in the Treasury about ensuring that growth happens?

[Mrs Gillan]

The hon. Lady makes a very good point, and that is exactly why, following the Budget, there was an increased provision for the Welsh Assembly Government of £65 million. Just to correct any figures that have been bandied about, I have checked with the Treasury and £10 million of that £65 million was Barnett consequentials for enterprise zone expenditure, and £20 million was for small business rate relief consequentials. I am sure that with £30 million the Welsh Assembly Government will be able to do something.

[Roger Williams (Brecon and Radnorshire) (LD)]

Since the sad demise of the Development Board for Rural Wales, there has been virtually no support for manufacturing in mid-Wales. Will the Secretary of State declare that rural Wales will not be ruled out in the consideration of enterprise zones?

[Mrs Gillan]

My hon. Friend asks me to step outside my brief, because I do not have responsibility for the enterprise zones in Wales. But I am sure that the Minister for Business, Enterprise and Technology in Wales will hear what he has said, and I encourage him to engage with her to discuss the possibilities for rural Wales.

[Hywel Williams (Arfon) (PC)]

A potential problem with enterprise zones, as the Chairman of the Treasury Committee has pointed out, is that jobs are transferred in, rather than new jobs being created. What steps can be taken to avoid that unwelcome outcome?

[Mrs Gillan]

The hon. Gentleman knows that I have been concerned about the position of Wales and enterprise zones from the minute that they were announced for England, not least because we have announced that there will be enterprise zones at Bristol and Merseyside. I am concerned that the enterprise zones on the English side of the border will affect inward investment in Wales, which is why I encouraged the Welsh Government to engage with us so that we can establish mechanisms that do not allow those two enterprise zones, which are so close to Wales, to suck business out of Wales.

[Paul Flynn (Newport West) (Lab)]

4. What assessment she has made of the potential effects on Wales of implementation of the provisions of the Welfare Reform Bill.

--- Later in debate ---

[Mr Wayne David (Caerphilly) (Lab)]

6. What recent estimate she has made of the number of public sector job losses in Wales during the comprehensive spending review period.

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

A forecast of public sector job losses was published last year by the Office for Budget Responsibility. That forecast was based on UK-wide macro-economic data and no regional breakdown is available. I remain committed to working with ministerial colleagues to minimise the impact that essential reductions in public expenditure have on Welsh workers and their families.

[Mr David]

The Government talk a lot about private sector growth, but does the Secretary of State not realise that, in Wales, the private sector is dependent on the public sector? massive cuts in one have a bad impact on the other.

[Mrs Gillan]

As the hon. Gentleman knows, the settlement for Wales was more generous than for many other parts of the United Kingdom. Over the comprehensive spending review, there were cuts of some 2% in the Barnettised money going to the Welsh Assembly Government. I urge him to talk to his friends in the Welsh Government, because many public sector jobs depend on the Welsh Government and the operations in Cardiff bay.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

The Secretary of State will be aware that Dyfed-Powys police have announced this week that they have recruited 39 new police officers for the front line. Will she join me in commending the chief constable for getting his priorities right and not spreading scare stories for political benefit?

[Mrs Gillan]

I thank my hon. Friend for reminding us that there are not always cuts in public sector jobs. In some instances, there is recruitment to public sector jobs. I congratulate his chief constable. I regularly meet the four chief constables in Wales, and they are all very positive about their forces and their operations protecting the public in Wales.

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

Does the Secretary of State share my concern about the report leaked last week indicating that seven out of eight HMRC offices in Wales are to be closed, leaving only one in Cardiff, with a loss of more than 1,000 jobs?

[Mrs Gillan]

The hon. Gentleman should know that I met HMRC earlier this week to discuss the reports in the press. I am pleased to say that there are no new announcements of HMRC office closures or moves in Wales at this time. HMRC has assured me that any office closures will not lead to job reductions beyond those already required by the spending review and that there are no plans to reduce the number of HMRC offices in Wales.

[Ann Clwyd (Cynon Valley) (Lab)]

7. What assessment she has made of the potential effects on Wales of implementation of the provisions of the Welfare Reform Bill.

--- Later in debate ---

[Ian Lucas (Wrexham) (Lab)]

10. What discussions she has had on the potential devolution of powers to set rates of stamp duty in Wales.

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

I note the First Minister’s statement last week on his Government’s priorities for financial reform and accountability, but I have had no representations from the Welsh Government on the proposals as yet.

[Ian Lucas]

Has the Secretary of State had any discussions with the Chief Secretary to the Treasury, who raised the issue before the Welsh Assembly elections? Has she discussed it with the Chancellor of the Exchequer, or do people in this Government not talk to each other?

[Mrs Gillan]

I am not sure where the hon. Gentleman gets the impression that people in our Government do not talk to each other. We talk to each other all the time. I have many meetings with the Chief Secretary to the Treasury and the Chancellor, and I am able to discuss matters that affect Wales on each and every occasion.

[Rosie Cooper (West Lancashire) (Lab)]

11. What assessment she has made of the performance of the Welsh economy since May 2010; and if she will make a statement.

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

First, I welcome the hon. Lady’s interest in Wales and its economy. The economy is starting to return to growth, and I am pleased that we are beginning to see signs of improvement in employment levels in Wales. We have had to make difficult decisions in order to reduce the massive deficit that we inherited. Our policies are the right ones to restore business confidence and move people into the jobs that they need.

[Mr Speaker]

Order. There are far too many private conversations taking place in the Chamber, including one that I have just concluded.

[Rosie Cooper]

I apologise, Mr Speaker; I could not hear. With 5.5 people chasing every job vacancy in Wales, does the Secretary of State consider job creation to be a priority? What, if anything, have she and her Government done about it?

[Mrs Gillan]

I am afraid that I did not catch the whole of the hon. Lady’s question. However, the Government recognise that the private sector will lead economic recovery in the UK. I am proud of our record of supporting businesses, and I am proud of what is happening in Wales, where the latest unemployment statistics reveal more people in work and fewer on the unemployment register.

[Mr Speaker]

Clearly, if the Secretary of State cannot hear questions, the noise is too loud, and it is impeding the process. Let us give a fair hearing to Mr Alun Cairns.

[Alun Cairns (Vale of Glamorgan) (Con)]

Private sector job creation is the only way to grow the Welsh economy sustainably. Does my right hon. Friend recognise that enterprise zones have a key role to play in that respect, and does she agree that Barry would make a great location for Wales’s first enterprise zone?

[Mrs Gillan]

The hon. Gentleman certainly punches above his height. The Vale of Glamorgan could have no greater champion. I refer him to the Minister for Business, Enterprise and Technology in the Welsh Assembly, who I am sure will be able to help him and make his dreams come true.

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

12. What assessment she has made of the potential effects of High Speed 2 on the economy of Wales.

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

The Government are currently consulting on a new national high-speed rail network. That is part of a wider programme of modernisation of the rail network, including electrification of the Great Western main line to Cardiff.

[Susan Elan Jones]

I have heard of trains cancelled because of snow on the line and leaves on the line, but never before because of the Secretary of State on the line. The high-speed rail link, HS2, would bring great benefits to Wales, but our Buckinghamshire-based Secretary of State opposes it. If our Secretary of State will not stand up for Wales, why does she not resign?

[Mrs Gillan]

I thank the hon. Lady for her close interest in my career. The Government are having an open consultation on HS2, and now that she has expressed such a great interest in the subject, we will expect her representations.

The Prime Minister was asked—

Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 11th May 2011 Commons Chamber

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

12. What progress has been made on the Government’s commitment to undertake a process similar to the Calman commission on devolution funding; and if she will make a statement.

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

Following the yes vote in the referendum on further powers, we have started to consider the scope and form of such a process. Now that the elections to the National Assembly have taken place I intend to discuss the process with other stakeholders and the First Minister. May I also take this opportunity while I am at the Dispatch Box to offer our congratulations to Carwyn Jones, who is currently considering forming the Welsh Assembly Government and has the largest party in the Welsh Assembly?

[Mary Macleod]

Our priority in Wales and elsewhere right now is to ensure that the deficit is under control. However, now that Ministers in the Welsh Assembly have more power, is it not right that they should be financially accountable for those powers as well?

[Mrs Gillan]

I thank my hon. Friend for that question. There is indeed a body of thought that believes that with the power to spend public money should come accountability, and this is certainly a matter that we will be looking at. However, this is not something that should be entered into in haste, and I intend to engage fully with the Welsh Assembly Government on the matter.

[Stephen Mosley]

The national border between north-east Wales and Chester is almost unique in that it passes through an urban area, with large numbers of people travelling in both directions every day for health care, education and employment. Will my right hon. Friend ensure that the remit of the review specifically includes looking at the impact of devolution on such cross-border services?

[Mrs Gillan]

I thank my hon. Friend that question too, because he knows that we in the Wales Office have been concerned about cross-border issues and their impact on health in particular. I cannot guarantee that that will fall within the scope of the Calman-like process, but I assure him that I will take into consideration any representations that he or any other Member wishes to make to the Wales Office.

[Andrew Selous]

Does my right hon. Friend agree that reforming the thoroughly discredited Barnett formula to take a fair and transparent needs-based approach for the whole of the United Kingdom would help Wales and England?

[Mrs Gillan]

The Government’s commitment to a wider review of the Barnett formula is clear, but stabilisation of the public finances comes first. I think we all recognise that the Barnett formula is coming to the end of its life, but we will consider a change to the system only once we have put the public finances in order. There was a good reason why the predecessor Government to this one made no changes to the Barnett formula in 13 years. It is not something that can be achieved in haste, only to be regretted at leisure.

[Paul Murphy (Torfaen) (Lab)]

May I ask the Secretary of State to take great care when she deals with these issues? As she knows, there is really no appetite in Wales for tax-varying or tax-raising powers—the resource base is not there—and even if there were, we would have to have a referendum in Wales for such powers, as happened in Scotland.

[Mrs Gillan]

I am grateful to the right hon. Gentleman, because I always remember sitting and listening to him give evidence to, I believe, a House of Lords Committee looking at the Barnett formula. He said that there was no case for reviewing it because it had served well. The fact that the last Government repeatedly ruled out reforming the Barnett formula means that any reforms must be looked at carefully. He is quite right that giving tax-raising powers would involve another referendum, which is something that this Government would look at carefully, because I am not sure whether Wales has an appetite at the moment for another referendum.

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

The Calman process in Scotland had a wider remit than merely to consider funding arrangements. Given the Labour party’s opposition to decoupling Westminster and National Assembly constituency boundaries, would it not make sense to base the make-up of the fifth National Assembly on 30 regional and 30 constituency Assembly Members?

[Mrs Gillan]

That is a very interesting thought. Hon. Members are well aware that the Parliamentary Voting System and Constituencies Act 2011 broke the link between Assembly constituencies and parliamentary constituencies. I have agreed that we need to look carefully at the implications of having constituency boundaries relating to different areas and regions for UK and Assembly elections in Wales. I am taking the hon. Gentleman’s question as a recommendation that we have 30 first-past-the-post seats and 30 elected on a list system, and I will look seriously at that suggestion.

[Mr Peter Hain (Neath) (Lab)]

Does the Secretary of State think that the Calman process will be as beneficial for the Tories in Wales as it was in Scotland last Thursday? Will she also congratulate Carwyn Jones on polling Labour’s highest ever Welsh Assembly vote, which included taking Cardiff North—about the safest Conservative seat in Wales—and beating the Liberal Democrats in Cardiff Central and Plaid Cymru in Llanelli? Will she ensure that if any financial concessions or flexibilities are offered to Scotland by her Government, as is now being suggested, Wales will receive equivalent benefits to compensate for the horrendous cuts that the Government are imposing on Welsh citizens?

[Mrs Gillan]

The right hon. Gentleman is on dangerous ground here. I do not want to engage in any sort of triumphalism or tribalism, to use the words of Carwyn Jones. The right hon. Gentleman will note that I came to the Dispatch Box to congratulate Carwyn, because I have worked well with him over the past 12 months. May I just remind him that the Conservative vote went up to 25% in Wales and the number of our seats went up to 14? We are now the second largest party in the Assembly, and the right hon. Gentleman had better think again before he starts taking us on.

[Mr Hain]

I know that the hon. Members for Cardiff North (Jonathan Evans) and for Vale of Glamorgan (Alun Cairns) will disagree with the Secretary of State on that, because Labour won the Assembly seats in their constituencies with thumping majorities. If, as the Chief Secretary to the Treasury suggested yesterday, Alex Salmond is to get the borrowing powers that he is demanding, as well as the ability to reduce corporation tax, how will increasing borrowing fit with her Government’s preoccupation with reducing the deficit at all costs? Furthermore, is not her Conservative-led Government playing into the hands of separatists by promoting separate economies?

[Mrs Gillan]

I would never play into the hands of separatists; I am a devoted Unionist, as I hope the right hon. Gentleman is. Before the Assembly elections, he and his party consistently boasted that they would win a majority in Wales, and I consider failing to do so a significant failure for him and his leader. On the question of separatism, however, he will know that my door is always open, and I would hope that we could join in common cause on this matter. He and I, and his party, support the United Kingdom and I want to ensure that all steps taken by the Wales Office will reinforce the United Kingdom. I see him nodding, and I am grateful for his acknowledgement that he would join me in that cause. I am sure that we can work well together on that.

[Mr Philip Hollobone (Kettering) (Con)]

3. What mechanisms her Department has used to identify efficiency savings since May 2010.

--- Later in debate ---

[David Rutley (Macclesfield) (Con)]

6. What discussions she has had with ministerial colleagues and the Welsh Assembly Government on improving broadband infrastructure in rural Wales.

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

I have discussed improving broadband infrastructure across Wales with ministerial colleagues and Welsh Assembly Government Ministers. Indeed, I arranged and hosted a meeting between the broadband Minister and the former Deputy First Minister to discuss joint working.

[David Rutley]

I would like to congratulate my right hon. Friend on the important work she is doing in this vital area. Many studies, including those by the Massachusetts Institute of Technology, the OECD and the World Bank, have highlighted how broadband immeasurably enhances economic growth. In my own local authority of Cheshire East, faster broadband is a key element in the economic development of rural communities. Will my right hon. Friend tell the House what assessment has been made of the economic benefit of enhanced broadband access in rural Wales?

[Mrs Gillan]

I thank my hon. Friend for his kind remarks. I know that he has a great deal of expertise in this area. An independent estimate in 2009 projected that superfast broadband in the UK could create up to 600,000 jobs and add £18 billion to GDP. We are working closely with the Department for Culture, Media and Sport and the Welsh Assembly Government to ensure that Wales benefits fully. Based on the population share, we estimate up to 30,000 new jobs being created and a possible £900 million of additional wealth being generated in Wales.

[Mrs Siân C. James (Swansea East) (Lab)]

I am sure the Secretary of State will join me in congratulating Virgin Media on rolling out in Swansea this week the fastest broadband speeds in the UK. It is not just a rural problem. We have heard about the economic case. How quickly can we roll out these speeds to other parts the Principality?

[Mrs Gillan]

I was particularly pleased that we were able to announce on 10 February £10 million of funding to support the extension of superfast broadband to Pwllheli. I know from working with colleagues in the DCMS and the Welsh Assembly Government that more announcements on this front will be made later this year. The hon. Lady is quite right on this issue, and I am particularly keen because broadband take-up in Wales is at 64% in comparison with 71% in the rest of the UK. Broadband take-up in rural Wales, however, is in excess of that in urban Wales, so I am very pleased to welcome Virgin Media’s announcement.

[Mr Mark Williams (Ceredigion) (LD)]

The Secretary of State will be aware not only that rural areas have slower and less reliable broadband, but that our constituents in those areas have to pay a lot more for it. Ofcom is currently investigating lowering the price that BT can charge internet service providers for wholesale broadband because it feels that prices are too high in rural areas. Will she make representations to Ofcom on behalf of people in rural areas to ensure that they, as well those in urban areas, secure a fair deal?

[Mrs Gillan]

I had some difficulty in hearing the whole of the hon. Gentleman’s question, but I should be happy to meet him to discuss the problems of rural broadband. He has always been a well-known champion of rural areas, and I am sure that if anyone can help me to make a case for bringing down costs in those areas, it will be him.

[Mr Speaker]

Order. I remind the Secretary of State that she must face the Chair. However, she was not alone in her difficulty. Far too many noisy private conversations are taking place in the Chamber in which I have no interest whatsoever. I must tell the hon. Member for Broadland (Mr Simpson) that I want to hear Mr Hywel Williams.

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[Robert Halfon (Harlow) (Con)]

8. What estimate she has made of the number of jobs to be created in Wales as a result of electrification of the Great Western main line to Cardiff.

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

The electrification of the Great Western main line will create thousands of job opportunities in the UK manufacturing and service supply chains, and Welsh companies will be well placed to take advantage of those opportunities.

[Robert Halfon]

Does my right hon. Friend agree that the project will be good for jobs, not just in Wales but throughout the United Kingdom? Will she make contracts available to the many first-class English construction and engineering firms, such as those in Harlow, many of which are small businesses?

[Mrs Gillan]

I was very pleased when we were able to announce the electrification, which will indeed help to provide jobs not only in Wales but in other parts of the United Kingdom. I hope that there will be many opportunities for businesses in my hon. Friend’s constituency, as well as throughout Wales, to be involved in the process. Certainly the Wales Office will do all that it can to facilitate that.

[Nick Smith (Blaenau Gwent) (Lab)]

Good transport links are vital to economic success. Will the Secretary of State undertake to deliver electrification of all the valley lines, including the line between Ebbw Vale and Cardiff?

[Mrs Gillan]

As the hon. Gentleman will know, we identified electrification of the valley lines as a key priority as part of the development of the business case for electrification. As he will also know, I have said that I stand ready to work with the new Welsh Assembly Government and the Department for Transport to facilitate the electrification of those lines. I shall certainly examine the case for electrification of the Ebbw Vale line, which he has made to me before.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

9. What recent representations she has received from tourism operators in Wales on Government financing for tourism promotion.

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

13. What recent assessment she has made of the future of the nuclear industry in Wales.

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

Nuclear energy is an important component of our future energy security and carbon reduction plans. It will therefore continue to have a future in the UK’s energy policy, and I hope that a new build at Wylfa will play a key role in creating new jobs in Wales.

[Steve Baker]

Will my right hon. Friend join me in lamenting the record of the Labour party, which failed to promote the latest generation of nuclear technologies and thereby put our energy security at risk?

[Mrs Gillan]

As my hon. Friend knows, this Government have said that nuclear could be part of the future energy mix, and he will know personally of my attitude towards Wylfa continuing as a nuclear power station, with new generation at the site.

[Graham Evans]

Does the Secretary of State agree that new power plants in Wales are good news for energy security, industry and job creation?

[Mrs Gillan]

That is an easy question for me to answer. I welcome the work that has been done to enable Wylfa to continue generating low-carbon electricity for a further two years, and I am delighted that the site has been chosen as a future new site for generation. [Interruption.]

[Mr Speaker]

Order. Let us have a bit of hush in the Chamber for the Chairman of the Select Committee on Welsh Affairs, Mr David T. C. Davies.

[David T. C. Davies]

In light of the comments of the Committee on Climate Change, which has said that nuclear represents the most cost-effective way of delivering carbon-free electricity, will the Secretary of State support the plant in Anglesey as a means of protecting future generations of homo sapiens?

[Mrs Gillan]

Once again, this is a very easy question to answer, but I nevertheless thank my hon. Friend for asking it. There is now a growing consensus of opinion right across the board in Wales that Wylfa in Anglesey would be an excellent site for future nuclear generation.

[Nia Griffith (Llanelli) (Lab)]

Given that an enormous amount of time and money has been put into studying tidal energy in the Severn estuary, what efforts is the Secretary of State making to take forward the plans for that and ensure they do not get lost?

[Mrs Gillan]

The hon. Lady knows that throughout the years when I have been both shadow Secretary of State and now Secretary of State for Wales, I have been very supportive of all the work that has been done, particularly on tidal lagoons, as well as in examining the case for the Severn barrage, which has, of course, been put to one side for the time being. I can assure her, businesses in her constituency and our research institutes that we will always consider that option for future generation in and around the Welsh coast.

[Paul Flynn (Newport West) (Lab)]

In addition to the fear of a Welsh Fukushima, the cost of new nuclear is such that the only new nuclear power station in the world is already three years late and £2 billion over budget. Why does the Secretary of State not concentrate on the immense power of the tides in Wales, including the second highest rise and fall of tide in the world, and give us energy that is clean, safe and eternal?

[Mrs Gillan]

The hon. Gentleman has been consistent, but he has asked questions on this matter of the Minister with responsibility for energy, my hon. Friend the Member for Wealden (Charles Hendry), and of my right hon. Friend the Prime Minister, and he knows very well that the Government’s view is that tidal energy has a part to play in our energy programmes of the future, but so, too, has nuclear.

The Prime Minister was asked—

Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 16th March 2011 Commons Chamber

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

I welcome the clear yes result announced on 4 March. The vote in favour of primary law-making powers for the Assembly will enable the Welsh Assembly Government to get on with the job of delivering better public services in Wales.

[Jonathan Lord]

I thank the Secretary of State. I note that there are now 20 devolved areas of policy for the Welsh Assembly and that Scotland has had similar powers for many years. Has she had conversations with other Ministers about the commission that we have been promised, or preferably legislation, so that only English MPs can vote on English laws that affect English residents, and thereby maintain the parity—

[Mr Speaker]

Order. We are grateful to the hon. Gentleman, but we must move on.

[Mrs Gillan]

I think my hon. Friend is referring to what is known as the West Lothian question, or as we sometimes call it in Wales, the West Clwydian question. I have had words with the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Forest of Dean (Mr Harper), and as he informed the House on 15 December, the Government will make an announcement this year on plans to establish a commission to consider the West Lothian question.

[Simon Hart]

Can the Secretary of State provide a timetable for the introduction of a Calman-style inquiry, as per the coalition agreement, and will she undertake a full consultation on the matter?

[Mrs Gillan]

I am grateful to my hon. Friend. When we established the coalition Government, we committed in the coalition agreement to establishing a Calman-like process for the Assembly. I will announce further details on that in the coming months.

[Paul Murphy (Torfaen) (Lab)]

The Secretary of State has just said that there will be a commission on the so-called West Lothian question. Does she personally believe that Welsh Members of Parliament should have fewer voting rights in this place, particularly bearing in mind that her Government have cut the number of Welsh MPs by 25%?

[Mrs Gillan]

As the right hon. Gentleman knows, it is important that every vote is of an equal weight in this country. I am sure he would not want me to revisit arguments that have been well made and exhausted in the House.

When the commission is established, it will need to take into account the Government’s proposals for House of Lords reform, the changes to the way in which this House does business and the changes to the devolution settlement in considering potential solutions to the West Lothian question.

[Mr Peter Hain (Neath) (Lab)]

Will the Secretary of State join me in welcoming the resounding yes vote in the referendum on 3 March? As she knows, I legislated on behalf of a Labour Government for primary powers for the Assembly in 2006, and we are delighted at this historic day for Wales. I hope she is too.

[Mrs Gillan]

The shadow Secretary of State must have been asleep when I answered the question in the first place and said that I welcomed the yes vote. I said that specifically during the passage of the Government of Wales Act 2006, when I sat in his position. I am also delighted that, despite prevarication, it was a Conservative-led coalition Government who delivered that referendum for the people of Wales.

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

Does the Secretary of State accept that given the nature of the yes campaign, it is clear that the vast majority of people in Wales wish to remain part of the Union? As a proud Welshman and a proud Unionist, I believe as strongly as other Members that something must be done about the West Lothian question, to stop Welsh MPs voting on matters for which they have no responsibility.

[Mrs Gillan]

I, too, am a devoted Unionist, but I recognise that the yes vote does not mean that the Welsh devolution settlement will stand still. It is a living object, which is why we are establishing a Calman-like process to examine the future of the Welsh Assembly and how we are governed across the UK, specifically in Wales.

[Andrew Stephenson (Pendle) (Con)]

3. What recent discussions she has had with ministerial colleagues on expenditure on broadband projects in Wales.

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[John Howell (Henley) (Con)]

7. What recent discussions she has had with ministerial colleagues on measures to attract inward investment to Wales.

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

Clearly, with so many of our companies in Wales having strong links with Japan, and given that some of our inward investment comes from there, I am sure the whole House would like to join me on behalf of Wales in sending our deepest condolences for the appalling tragedy.

I have regular discussions with ministerial colleagues on measures to attract inward investment to Wales. Last month I hosted a trilateral meeting between the First Minister, the Deputy First Minister and the UK Minister responsible for trade and investment to discuss how we can work together to bring much-needed investment to Wales. We will be meeting again shortly.

[Karen Lumley]

Does the Secretary of State agree that Wales has much to offer business, as the Welsh Affairs Committee heard yesterday from Sir Terry Matthews? Can she also tell us what she is doing to work with the Welsh Assembly to bring inward investment to Wales?

[Mrs Gillan]

Although it is too early to prejudge the outcome of the Committee’s inquiry on inward investment, a clear message on skills emerged in oral evidence last week. That message was consistent with the conclusions of the earlier cities report. Certainly, I will see how the UK Government can work with the Welsh Assembly Government to encourage more inward investment, because Wales is a great place to do business.

[John Howell]

In the last couple of weeks, a number of strong foreign trade and investment visits have been made to Wales, particularly from India and the US. Does the Secretary of State agree that those are vital for Wales, and that we should maximise the opportunities that they present?

[Mrs Gillan]

It is very easy to agree with my hon. Friend on that, because we need to maximise the opportunities that such visits present. Wales’s share of UK inward investment projects halved in the past decade from 6% to 3% and we need to act quickly to reverse that. It is therefore important to work across Government Departments in Whitehall, together with the Welsh Assembly Government, so that we have a cohesive programme for attracting inward investment.

[Kevin Brennan (Cardiff West) (Lab)]

With unemployment reaching a 17-year high this morning—up to 8.7% in Wales—where is the Secretary of State’s plan for growth?

[Mrs Gillan]

I am tired of Members talking Wales down. The message that has just gone out from the hon. Gentleman is not a positive one. The unemployment figures were announced this morning. Although I have given them a cautious welcome because the economic inactivity rate continues to fall, I want people to know that we have a willing and able work force and that Wales is open for business. It is about time the hon. Gentleman joined me in talking Wales up.

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

It emerged in the Welsh Affairs Committee’s visit to Germany that vital inward investment opportunities were not being taken up by UK Trade & Investment because of the abolition of regional development agencies in England. Does the Secretary of State accept that this may represent a major opportunity for Wales and if so, what is she doing about it?

[Mrs Gillan]

I had a particularly good meeting with the First Minister, the Deputy First Minister and the Minister responsible for trade. I am keen that we should have some joined-up government, because we have not been taking advantage of all the opportunities that exist. After the Assembly elections we shall have to take that forward with the new Welsh Assembly Government, and I know the current Welsh Assembly Government have been looking at rationalising their offices abroad and having a more comprehensive programme—one that is engaged with UKTI, the Department for Business, Innovation and Skills, the Foreign Office, and the Wales Office. Together, we will have a stronger presence.

[David Mowat (Warrington South) (Con)]

6. What recent representations she has received on the mechanism for calculating the block grant settlement for the Welsh Assembly.

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[Graham Evans (Weaver Vale) (Con)]

10. What recent discussions she has had with ministerial colleagues and Ministers in the Welsh Assembly Government on energy policy in Wales.

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

The Under-Secretary of State for Wales and I have regular discussions with ministerial colleagues and Welsh Assembly Government Ministers on a range of issues, including energy policy. Last week, I was pleased to call the first Welsh Grand Committee debate on energy since 2008, which gave right hon. and hon. Members a chance to debate in detail that issue, which is of vital importance to Wales.

[Graham Evans]

As a result of the last Government’s policy of burying their head in the sand when it came to energy, we are facing the real prospect of power cuts. Does the Secretary of State agree that building new power plants in Wales is essential for energy security, industry and job creation?

[Mrs Gillan]

Energy is certainly a key priority of this Government and we are working hard to ensure that the UK, including Wales, has an energy infrastructure that is fit for the 21st century.

[Paul Flynn (Newport West) (Lab)]

Does the Secretary of State agree that the exciting plans of the Welsh Assembly Government to generate enough electricity for every home in Wales from non-barrage marine sources offers Wales an energy future, like that of Ireland and Scotland, that will be nuclear free and renewables rich?

[Mrs Gillan]

I am not sure that I caught the drift of the hon. Gentleman’s question, but I have always welcomed the work that is being done to enable Wylfa A to continue to generate low-carbon electricity for a further two years until 2012. I was also delighted that Wylfa was chosen as the site for a potential new station in the future.

[Jenny Willott (Cardiff Central) (LD)]

This Government have put the environment at the heart of their energy policy. Last week, I attended the launch of Norman Electrical Ltd, a small business in my constituency that is working with households and businesses to invest in renewable technologies. Will the Secretary of State join me in welcoming such start-ups and do what she can, with colleagues, to help Wales to become central to the renewable technology sector in the UK?

[Mrs Gillan]

Yes, I join my hon. Friend in congratulating the company in her constituency. If all 26 million households in the United Kingdom take up our green deal over the next 20 years, employment in that sector could rise from its present level of 27,000 to something approaching 250,000, working all around the UK to make our housing stock fit for a low-carbon world.

[Jessica Morden (Newport East) (Lab)]

11. What recent estimate she has made of the number of jobs to be lost in the public sector in Wales as a result of the reductions in public expenditure in 2011-12.

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[Mr Philip Hollobone (Kettering) (Con)]

12. What recent discussions she has had with the Secretary of State for Transport on electrification of the rail network in south Wales.

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

The statement made on St David’s Day by my right hon. Friend the Secretary of State for Transport was excellent news for all parts of south and west Wales. This £1 billion investment will deliver all the benefits and improvements of an electrified railway to Wales, with faster acceleration, greater comfort and cleaner and greener travel. The decision to extend electrification to south Wales recognises that improved rail infrastructure and lower journey times are vital components for delivering a successful economic recovery in Wales.

[Mr Hollobone]

What estimate has the Secretary of State made of the number of new jobs that will be created in Wales as a result of the electrification programme?

[Mrs Gillan]

I hope that the electrification of the rail line, which was launched and announced with full funding by this Government, will bring the much-needed inward investment into Wales, resulting in the many jobs that we need.

The Prime Minister was asked—

Referendum on Law-making Powers

Cheryl Gillan Excerpts

Monday 7th March 2011 Written Statements

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

On behalf of the Government, I welcome the result of the referendum on enhanced law-making powers for the National Assembly for Wales, which took place on 3 March.

The Government have fulfilled their commitment to hold a referendum—requested by Assembly Members—set out in the coalition’s programme for Government. The referendum has enabled the people of Wales to have their say in determining the powers the National Assembly should have.

The “yes” vote will mean that the Welsh Assembly Government can get on with the job of delivering better public services, and bring forward legislation in devolved areas without reference to Parliament. The Assembly will be able to legislate on subjects in the 20 areas covered by the original devolution settlement, and set out in schedule 7 to the Government of Wales Act 2006. All the areas previously non-devolved remain non-devolved, and are the responsibility of the Government and Parliament. There is no change in this respect.

It is now for the Welsh Assembly Government and the National Assembly to decide when to bring the Assembly’s enhanced powers into force.

The Government are committed to working closely with the Welsh Assembly Government and National Assembly to make these legislative arrangements work effectively.

Departmental Expenditure Limit (2010-11)

Cheryl Gillan Excerpts

Monday 14th February 2011 Written Statements

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

Subject to parliamentary approval of any necessary supplementary estimate, the Welsh Assembly Government’s total departmental expenditure limit (DEL) will be increased by £108,565,000 from £15,178,509,000 to £15,287,074,000.

Within the total DEL change, the impact on resources and capital is set out in the following table:

Proposed National Assembly for Wales (Legislative Competence) (Highways and Transport) Order 2011

Cheryl Gillan Excerpts

Thursday 3rd February 2011 Written Statements

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

I would like to inform the House that the proposed National Assembly for Wales (Legislative Competence) (Highways and Transport) Order 2011 was laid on 3 February, as Command Paper Cm 7999. Copies of this can be found in the Vote Office and are also available from the Library. I have written to the Welsh Affairs Committee and to the House of Lords Constitutional Committee to request that they undertake pre-legislative scrutiny.

Education Bill: Framework Powers Explanatory Memorandum

Cheryl Gillan Excerpts

Thursday 3rd February 2011 Written Statements

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

I am pleased to inform the House that the explanatory memorandum explaining the Government’s proposal for framework powers in the Education Bill are available in the Vote Office, Library and the Printed Paper Office, and on the Wales Office website: (www.walesoffice.gov.uk).