Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 2nd February 2011 Commons Chamber

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

6. What recent discussions she has had with the Secretary of State for Transport on the electrification of the great western main line.

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

I have many discussions about this matter, and I remain fully supportive of electrifying the great western main line.

[Huw Irranca-Davies]

I thank the Secretary of State for that update. I never thought that I would say this, but I agreed with the Chancellor when he said last week that high-speed rail

“will provide for the next generation.”

This generation of businessmen and commuters from south Wales are looking forward to a fully electrified higher-speed rail all the way to Swansea. Will the right hon. Lady do everything in her power to ensure that we have that as soon as possible?

[Mrs Gillan]

I hear the hon. Gentleman, and I am pleased to agree with him that good infrastructure will be of great benefit to our economy in Wales. However, I should remind him that his party had 13 years to electrify the great western line to Swansea, yet failed to electrify a single inch.

[Mrs James]

I am sure that the Minister is aware that electrification of the south Wales main line to Swansea is vital, especially for the economy of the city, but also for the economies of west Wales. The recent Centre for Cities report forecast that Swansea would face severe challenges during the recovery period. Given that news, does she agree that rail electrification to Swansea is even more vital to local businesses and citizens in the region?

[Mrs Gillan]

I am happy to say that I have had sight of that report. I continuously worry about how we will build up our economy in Wales and restore our fortunes. Like her hon. Friend the Member for Ogmore (Huw Irranca-Davies), the hon. Lady is absolutely right to say that infrastructure is important, whether it be railway or roads infrastructure, or broadband. I would encourage her to make her representations directly on this matter. I hope that she has written to my right hon. Friend the Secretary of State for Transport and also to my office.

[Jonathan Evans (Cardiff North) (Con)]

My right hon. Friend is right to draw attention to the abysmal record of the outgoing Labour Government, but let me make it clear that we on the Government Benches are arguing just as passionately for electrification right through to Swansea, to see the Welsh economy rebalanced from the public sector and private sector jobs coming through. We cannot have money spent on high-speed rail without electrification in Wales.

[Mrs Gillan]

My hon. Friend knows that we plan to invest £14 billion over the next four years to fund maintenance and investment in our railways. Whatever we end up with when an announcement is made, he can rest assured that we have left no stone unturned in making the case for electrification into Wales.

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

Electrification will take many years to complete, so will the Secretary of State consult the franchisee to see whether we can have direct routes from London Paddington to Bristol, Newport and Cardiff, thereby reducing the journey time to that achieved 20 years ago?

[Mrs Gillan]

My hon. Friend is right. I have already met First Great Western on that very subject, and I will continue to hold meetings. We appreciate that we are talking about a crucial project but, as my hon. Friend knows, the last Government had 13 years, and all they came up with was a cheap promise and no funding to back it up.

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

Will the Secretary of State please confirm that it is entirely Westminster’s responsibility to maintain and develop the south Wales line?

[Mrs Gillan]

I am sure I do not have to tell the hon. Gentleman what is devolved and what is not. He knows that the electrification of the main line is Westminster’s responsibility. However, let me remind him that there are also important improvements that could be made to the diversionary lines and the Cardiff valleys network. That is the responsibility of the devolved Administration, yet we have not seen any progress on that front.

[Mr Llwyd]

Is the right hon. Lady aware that the cost-benefit analysis for electrification of the south Wales line is far better than that for Crossrail? However, whereas Crossrail, at £16 billion, is going apace, nothing has happened for the past nine months on this vital issue for the south Wales line.

[Mrs Gillan]

I remind the hon. Gentleman that plenty has happened in regard to this vital issue, but this is not a decision that can be taken overnight. The previous Government were very happy to make uncosted promises about this routing, but this is not a simple process. A range of factors must be thoroughly considered and, to that end, the Wales Office has been working not only with the Department for Transport but with the Welsh Assembly Government, and I remain optimistic about a good outcome.

[Mr Peter Hain (Neath) (Lab)]

Does the Secretary of State have any meetings on rail electrification scheduled for 1 April?

[Mrs Gillan]

I am sure that if the right hon. Gentleman wants details of my diary, he can ring the office.

[Mr Hain]

As it happens, I have details of the right hon. Lady’s diary here. Instead of progressing rail and other Wales matters, the entire Wales Office ministerial team—the Secretary of State and the Under-Secretary, the hon. Member for Clwyd West (Mr Jones)—will be at a Conservative party fundraising event in Chesham and Amersham. This is no April fool’s day story: I have the invitation here.

On the decision to electrify rail, the former Transport Secretary, Lord Adonis, said:

“The business case for electrification to Swansea is strong. All the technical issues, for example, electrifying the Severn tunnel, were resolved.”

If he says that the business case is strong, why the delay?

[Mrs Gillan]

I am ashamed that the shadow Secretary of State for Wales has wasted his two questions and resorted to trivia. Unlike him, I take this matter very seriously. The letter that I received from his wife actually made more sense than his questions at the Dispatch Box today.

[Andrew Griffiths (Burton) (Con)]

2. What discussions she has had with the Welsh Assembly Government and other stakeholders on steps to attract inward investment into Wales.

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

I have had various discussions with the First Minister and the Deputy First Minister on attracting inward investment to Wales. I have also discussed the matter with ministerial colleagues, including the Secretary of State for Business, Innovation and Skills and the Government’s trade adviser, my right hon. Friend Lord Brittan. This afternoon, I shall facilitate a meeting between the First Minister, the Deputy First Minister and my hon. Friend Lord Green, the Trade Minister, on the same issue.

[Andrew Griffiths]

The Secretary of State will know that Wales is heavily reliant on a small number of very large companies: 1.8% of the companies in Wales account for 69% of turnover, and the number of new businesses established between 2004 and 2009 fell by 28%. What meetings is she having with the Welsh Assembly Government on support for small and medium-sized enterprises in Wales?

[Mrs Gillan]

My hon. Friend is quite right about the figures on the private sector in Wales. Indeed, the shadow Secretary of State has often said that he thought the private sector in Wales was too small, but he failed to address that issue while he was in government. I have continual meetings with the Welsh Assembly Government on these matters, and we are particularly committed to encouraging business confidence through the measures that we are taking for small businesses and others. I know, from meeting businesses in Wales, that the cancellation of the job tax proposed by Labour went down particularly well with the business community.

[Dr Hywel Francis (Aberavon) (Lab)]

Higher education plays a big role in attracting high-quality inward investment to Wales. Will the Secretary of State therefore join me in welcoming the decision of the Labour-led Welsh Assembly Government to announce a large investment in Swansea university’s new science and innovation campus, which will be located in my constituency? Will she also outline what she intends to do to support such initiatives across the whole of Wales?

[Mrs Gillan]

The hon. Gentleman is absolutely right. I have had the privilege of going down to Swansea and looking at the Institute of Life Science buildings, ILS1 and ILS2, and I welcome that investment. As he knows, this is a devolved matter, and the levers of power and the decisions about money rest with the Welsh Assembly Government. That is why I was so sad to see the closure, by the Labour Welsh Assembly Government, of some of the techniums across Wales. However, the hon. Gentleman can rest assured that I will continue to press this case, because I believe we have some of the best universities in the country providing the best research and support to businesses that are looking to invest in Wales.

[Jenny Willott (Cardiff Central) (LD)]

3. What discussions she has had with the Secretary of State for Transport on the closure of the Driving Standards Agency office in Cardiff.

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[Robert Halfon (Harlow) (Con)]

7. What recent discussions she has had with the Secretary of State for Business, Innovation and Skills on the effects of her Department's policies on apprentices on the number of apprentices in Wales.

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

I have regular discussions with Cabinet colleagues on a range of issues, including apprentices. The Government believe that apprenticeships are a key component of the development of work force skills and one of the best forms of work-based learning.

[Robert Halfon]

Will the Secretary of State give Welsh backing to my campaign—supported by the Minister for Further Education, Skills and Lifelong Learning, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who is responsible for apprenticeships—for the establishment of a royal society of apprentices and an apprenticeship card to provide training, support and mentoring which would benefit apprentices in the whole United Kingdom, including Wales?

[Mrs Gillan]

This is the first time I have heard about such a scheme from my hon. Friend. Next week is apprenticeship week: between 7 and 11 February, efforts will be made to encourage more businesses to provide opportunities for apprentices in Wales. I should be delighted to meet my hon. Friend, and to give whatever support I can to that new organisation in order to confer greater status on what I consider to be a fantastic opportunity for many young people.

[Albert Owen (Ynys Môn) (Lab)]

There is a general consensus across the House that we need more apprenticeships in Wales, including apprenticeships in such areas as green technology. Will the Secretary of State ask the Secretaries of State for Business, Innovation and Skills and for Energy and Climate Change to reconsider their ports policy, which allows the construction of wind farms throughout the United Kingdom? The Government have now changed the rules to give English ports precedence over Welsh ports. Will the Secretary of State ask them to reconsider, and to introduce joined- up thinking to attract inward investment and create apprenticeships?

[Mrs Gillan]

Despite the deficit, we remain committed to apprenticeships, as, I am sure, does the hon. Gentleman. We are spending £250 million a year in England, and the Welsh Assembly Government have received consequential funding.

I have looked into one of the issues pertaining to ports, namely the money provided by the Department of Energy and Climate Change for renewables. I understand that there has been a Barnettised consequential. However, I will double-check because I know how important the issue is, but I suggest to the hon. Gentleman that when matters are Barnettised, he should press the Welsh Assembly Government to spend the funds in that way.

[Mr Speaker]

Order. Far too many private conversations are taking place in the Chamber. I want to hear Stephen Mosley.

[Stephen Mosley (City of Chester) (Con)]

8. What discussions she has had with the Welsh Assembly Government and other stakeholders on steps to attract inward investment into north-east Wales.

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

I have regular discussions with Welsh Assembly Government Ministers and other stakeholders on a range of issues affecting Wales, including attracting inward investment.

[Stephen Mosley]

North-east Wales and Chester share the single economic sub-region that straddles the Anglo-Welsh border, so inward investment in north-east Wales benefits Chester too. What action is the Secretary of State taking to ensure that local authorities and the new local enterprise partnerships in England, over the border, support much-needed inward investment in north-east Wales?

[Mrs Gillan]

My hon. Friend knows that I am very keen on inward investment. One of the things I did in the past two weeks was visit the Deeside hub to look, in particular, at the apprentice training taking place at Deeside college. The college has links to large cities such as Manchester and Liverpool, which are established clusters of high technology and innovative business. I am keen to work with the Welsh Assembly Government and other Departments of state to get institutions working together in the interests of the Welsh economy and attracting inward investment to Wales.

[Mr Speaker]

May I appeal to the Secretary of State to face the House so that we can all hear her?

[Mr David Hanson (Delyn) (Lab)]

Will the Secretary of State make contact with Kerry Foods of Ireland, which proposes to transfer business out of north-east Wales from Headland Foods Ltd in Flint, in my constituency, to Grimsby? Will she examine whether steps can be taken, even at this late stage, to retain those jobs in Wales? If they cannot be retained, will she ensure that she stands up for the work force and their redundancy terms and seeks alternative inward investment to help to replace those jobs?

[Mrs Gillan]

I am sad to hear from the right hon. Gentleman that someone is thinking of moving business out of his constituency and across the border. I hope that he has made representations to the Welsh Assembly Government—I would not want to cut across anything that they are doing, as they are responsible for economic development, but my door is always open to him. If he would like to write to me about this particular case and company, and the associated issues, I will make investigations to see how I can help. I think that that is the proper way of conducting business.

[Greg Hands (Chelsea and Fulham) (Con)]

9. What recent discussions she has had with ministerial colleagues on steps to assist economic growth in Wales.

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

In the past week, I have met my right hon. Friends the Secretary of State for Transport and the Home Secretary, and the Minister for Trade and Investment, Lord Green, to discuss a range of issues to assist economic growth in Wales.

[Greg Hands]

Given this year’s corporation tax cuts, the new national insurance contributions holiday for small businesses and the cancellation of Labour’s national insurance tax hike next month, does the Secretary of State agree that this Government are restoring Wales’s good reputation as a destination for inward investment, which was so badly damaged by the previous Government?

[Mrs Gillan]

My hon. Friend knows that we will be working night and day to restore Wales’s reputation as a good destination for inward investment. Indeed, my right hon. Friends have already started that work by reducing over-regulation on business, reducing the taxes on business, introducing national insurance holidays and rolling back the wicked jobs tax that would have affected business in Wales and all over the United Kingdom.

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

In the light of last week’s disastrous economic figures, where will the private sector jobs come from to replace the public sector jobs that the Government are intent on slashing?

[Mrs Gillan]

I think the hon. Gentleman should take a deep breath and not talk Wales down, but talk it up. I was particularly pleased to see this week’s manufacturing figures, which reflect very well on the United Kingdom and are a great source of optimism. I hope he will join me in sending out the message that Wales is open for business and that businesses should look to us for their investment.

Localism Bill: Framework Powers

Cheryl Gillan Excerpts

Tuesday 11th January 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 Localism Bill are available in the Vote Office, Library and the Printed Paper Office, and on the Wales Office website: (www.walesoffice.gov.uk).

Proposed National Assembly for Wales Legislative Competence Order

Cheryl Gillan Excerpts

Tuesday 11th January 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) (Health and Health Services) Order 2011 was laid yesterday, as Command Paper 7992. Copies of this can be found in the Vote Office and are also available in the Library. I have written to the Welsh Affairs Committee and to the House of Lords Constitution Committee to request they undertake pre-legislative scrutiny.

Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 8th December 2010 Commons Chamber

[Stuart Andrew (Pudsey) (Con)]

7. What recent discussions she has had with ministerial colleagues on the level of employment in Wales.

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

I have regular discussions with ministerial colleagues on the level of employment in Wales. I am pleased that for the past three months in Wales, unemployment figures have fallen while employment has risen—positive signs that our approach is working.

[John Howell]

Nobody would wish to be complacent, but does my right hon. Friend agree that the good news on employment in Wales is an indication that the hard choices we have made about the economy are working for Wales?

[Mrs Gillan]

My hon. Friend is absolutely right that we have had to make hard choices. We are rebalancing and strengthening the economy by cutting the mountain of debt that the previous Government left us, in order to improve our economic prospects and ensure that more jobs can be created in Wales and across the United Kingdom.

[Stuart Andrew]

My birthplace of Anglesey is no stranger to the difficult economic times we have had, particularly given the loss of hundreds of jobs at Anglesey Aluminium Metals. What steps is my right hon. Friend taking to encourage employment on Anglesey and across north Wales?

[Mrs Gillan]

I am sure that hon. Members from all parts of the House agree that the job losses at Anglesey Aluminium Metals were a great blow to the Anglesey economy. I am delighted—and, as an Anglesey boy, my hon. Friend will know—that the life of Wylfa power station has been extended by two years. The site is one of eight across the UK that have been shortlisted for future nuclear generation. That would ensure good employment for the people of Anglesey and north Wales, and I am sure that all hon. Members hope it will come to fruition.

[Mr Peter Hain (Neath) (Lab)]

Of course, those decisions about Anglesey were taken by the Labour Government and supported by the excellent MP, my hon. Friend the Member for Ynys Môn (Albert Owen). I wish the Secretary of State and all at the Wales Office festive greetings. The Office for Budget Responsibility estimates show that the actions of her Government will result in tens of thousands of public sector job losses in Wales. How many of those will involve women?

[Mrs Gillan]

I wish the shadow Secretary of State a very happy Christmas and a prosperous new year, and I thank him for his kind greetings. We are certainly not complacent and any job losses are to be regretted. We were pleased, however, that the OBR’s original 490,000 forecast for the reduction in public sector staff came down to 330,000 in last week’s forecast. I am sure that he will want to welcome that reduction of 160,000.

[Mr Hain]

I find it astonishing that the Secretary of State has no idea of the number of women in Wales who will lose their jobs as a result of the public sector cuts implemented by her Government. Women make up fully three quarters of public sector workers in Wales, including at Newport passport office, which is being so shamefully closed. The highly respected Fawcett Society is so incensed at the punitive impact on women of Government cuts that it even tried to challenge them in the High Court. As the first woman Secretary of State for Wales, is she proud of her Government’s attitude to Welsh women?

[Mrs Gillan]

The Government have considered all the possible impacts on women, and many of the changes that we have made to support small companies, for example, will help women, because women are much more likely to work part time. The shadow Secretary of State has misled the House, and—

[Mr Speaker]

Order. The Secretary of State must not accuse any right hon. or hon. Member of misleading the House. She has a lot of experience, and I know that she will correct what she has just said.

[Mrs Gillan]

Of course I will correct it, Mr Speaker. The shadow Secretary of State is possibly in danger of misleading the House, because he knows quite well that Newport passport office has not yet been closed and that we have already secured the front-of-house services for it, which will save up to 45 jobs. In 2008, his Government did exactly the same thing to the passport office in Glasgow, so I will take no lessons from him.

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

3. What recent discussions she has had with the Secretary of State for the Home Department on policing in Wales.

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[Andrew Rosindell (Romford) (Con)]

5. What discussions she has had with the Secretary of State for Culture, Olympics, Media and Sport on arrangements in Wales to mark the diamond jubilee of HM the Queen.

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

The Government are closely involved in the plans to celebrate Her Majesty’s diamond jubilee in 2012. A special four-day jubilee weekend will be held over the first week of June 2012, and other events will be announced in due course.

[Andrew Rosindell]

Does the Secretary of State agree that all parts of the UK should play their part in ensuring that the celebration of the Queen’s 60th anniversary as head of state is a momentous occasion? Will she outline what her Department is doing to work with the Welsh authorities and others to ensure that the jubilee is truly a momentous occasion?

[Mrs Gillan]

The jubilee will be a truly historic occasion, and certainly a great testament to the hard work and dedication of Her Majesty the Queen to this country and her people. The people of Wales will be able to play their full part in it. My hon. Friend will be pleased to know that we are working closely with Buckingham palace and the Welsh Assembly Government to ensure that the Welsh public are given every opportunity to celebrate the jubilee.

[Chris Bryant (Rhondda) (Lab)]

I am absolutely certain that large numbers of people in my constituency will want to celebrate the 60th anniversary, just as they did the 50th anniversary. However, I urge the Secretary of State to speak to the police and health service in Wales, because on the last long weekend when we had two bank holidays together several young people in the Rhondda died from drug overdoses, many of them because they were given their methadone for the Monday and Tuesday on the Friday beforehand. Will she ensure that we do not repeat those problems?

[Mrs Gillan]

I am grateful to the hon. Gentleman for raising that problem, because I was not aware of it. Certainly, that would be sad at a time of celebration. He will be aware that the Government are publishing our new drug strategy, and I will ensure that that problem is brought to the attention of my right hon. Friend the Home Secretary, who is responsible for the strategy. We will take action on that front, but perhaps he could help me by writing to me so that I can take the matter up properly.

[Mr Andrew Turner (Isle of Wight) (Con)]

6. What recent discussions she has had with the Secretary of State for Work and Pensions on welfare reform in Wales.

--- Later in debate ---

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

I have had regular discussions with the First Minister on the proposed referendum. I can confirm that this Government have delivered on their commitment to hold a referendum on further powers for the National Assembly for Wales in the first quarter of next year. The legal instruments setting out the arrangements for the referendum to take place on 3 March 2011 were approved by Parliament and will be considered at the Privy Council meeting later this month.

[Mr Amess]

In the light of that answer, what consideration has my right hon. Friend given to the outcome of the referendum?

[Mrs Gillan]

The Wales Office will remain strictly neutral throughout the referendum process, but it is right to consider and prepare now for the outcome, whether it be a yes vote or a no vote. Clearly, a yes vote will transfer primary powers to the Assembly over those areas already devolved, and that will mean a changed relationship with Westminster, including the impact of legislation made in Cardiff on this House and this legislature. If there is a no vote, we will retain the existing legislative process. In that eventuality, I will examine how we can make the system more effective and more efficient, because it is broadly agreed that the legislative competence order process, as it currently operates, is cumbersome and time consuming.

[Albert Owen (Ynys Môn) (Lab)]

I welcome the referendum on greater law-making powers for the Assembly, and I will campaign and vote for a yes. While the Secretary of State does not have a vote and wishes the Wales Office to be neutral, can she indicate what the Under-Secretary, who is a Welsh MP, will do? Will he vote yes or no, or will he sit on the fence?

[Mrs Gillan]

Ministers in the Wales Office will remain neutral. Unlike the hon. Gentleman’s party, the Conservative party in Wales will allow members a free vote. That is the sensible way to proceed.

[Mr Adam Holloway (Gravesham) (Con)]

9. What recent discussions she has had with ministerial colleagues on support for the aerospace industry in Wales.

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

11. Whether she has discussed with the Secretary of State for Transport the electrification of the London to south Wales railway line; and if she will make a statement.

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

I have had, and continue to have, discussions with my right hon. Friend the Secretary of State for Transport about that matter. We have already announced £7 billion of rail infrastructure improvements that will reduce journey times to Cardiff by 15 minutes. The next step is to work with the Welsh Assembly Government on the business case for further electrification. I have recently spoken to both the First Minister and the Deputy First Minister to agree how best to take that forward.

[Mr Llwyd]

People in Wales will be very disappointed by such a response. Network Rail has allocated no expenditure whatsoever to Wales for the next 12 months. Does the right hon. Lady realise how vital that is to the Welsh economy?

[Mrs Gillan]

I think I heard that question. I congratulate the hon. Gentleman on receiving at the ITV Wales Welsh politician of the year awards the “campaigner of the year” award for his work on aftercare for military veterans. We all congratulate him heartily.

I assure him that I fully support electrifying the great western main line, but the process is not simple and a range of factors must be considered. If he thinks it is such an easy matter, he should ask the people he sits on the same side of the House with why not a single centimetre of line was electrified in Wales under the Labour Government. [Interruption.]

[Mr Speaker]

Order. There is far too much noise in the Chamber. It is very discourteous to Members and, indeed, to Ministers.

[Mr Llwyd]

The assurances that the right hon. Lady gives that she will fight her corner for Wales are becoming rather empty—a bit like the situation with tuition fees and the Lib Dems.

[Mrs Gillan]

It is unusual for the hon. Gentleman to be quite so sour. As he knows, the Department for Transport is considering new inter-city rolling stock to replace the existing InterCity 125s. The two options that remain under consideration are the revised bid from Agility Trains for a mixed fleet of some all-electric trains, and a proposal for a fleet of new all-electric trains that could be coupled to new diesel locomotives. He knows the decision is complex and I reassure him that I am working with the First Minister and the Deputy First Minister on the business case. My officials are constantly in touch with the Department for Transport. We need to take our time and get this decision right for Wales.

[Kevin Brennan (Cardiff West) (Lab)]

The Secretary of State has said that she will resign if the high-speed main line goes through her constituency. Will she resign if she fails to secure the electrification of the line to south Wales?

[Mrs Gillan]

The hon. Gentleman knows that the Prime Minister is well aware of my constituents’ objections to route 3. If the preferred route on the high-speed rail is route 3, he will expect me to argue against it, not least because we will be holding a proper consultation. He also knows that, when he was in Government, many Cabinet Ministers made representations on post offices in their constituencies after they had supported—

[Mr Speaker]

Order. I want to hear Karen Lumley.

Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 3rd November 2010 Commons Chamber

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

2. What discussions she has had with the Chancellor of the Exchequer on Government policy on the funding for the National Assembly for Wales determined in the comprehensive spending review.

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

I have discussed the comprehensive spending review with my right hon. Friend the Chancellor of the Exchequer and other Cabinet colleagues. The spending review sets out how the Government will carry out Britain’s unavoidable deficit reduction plan. We have secured a fair settlement for Wales. It is now for the Welsh Assembly Government to decide how to manage the reductions, reflecting their own policies and priorities.

[Jonathan Edwards]

The UK Government refuse to review Wales’s funding settlement, despite four independent reports highlighting the inequity of the Barnett formula, until the proposed March referendum. Will the Secretary of State explain the link between legislative competence for the National Assembly and funding for the Welsh Government, because under the terms of the Government of Wales Act 2006 they are distinct bodies?

[Mrs Gillan]

The hon. Gentleman knows very well that there have been two recent reports to the Welsh Assembly Government by Gerald Holtham, both of which I have looked at and discussed with the First Minister. We are still waiting to see what the response is from the Welsh Assembly Government to the second report from Gerald Holtham and it is right and proper that we should wait and see what the Welsh Assembly Government say first. As the hon. Gentleman knows, the details in the coalition agreement are quite clear. We have said that the Barnett formula is coming towards the end of its time, but we have a priority to put this economy back into shape after it was left in such a disgusting mess by the outgoing Government.

[Mr Peter Hain (Neath) (Lab)]

On what date was the Secretary of State informed by the Secretary of State for Culture, Olympics, Media and Sport of his plans to change the status of S4C?

[Mrs Gillan]

The right hon. Gentleman knows that I have many meetings with the Culture Secretary on S4C. I have discussed the future of S4C on many, many occasions.

[Mr Hain]

You will have noticed that she did not answer the question, Mr Speaker. The day before the comprehensive spending review, on the evening of Tuesday 19 October, the BBC’s Nick Robinson first broke the news that S4C was to be joined with the BBC before the S4C authority had even been informed. It is not clear from her answer whether the Secretary of State knew what the Culture Secretary was planning before Nick Robinson did or whether, like the rest of us, she found out from him. It saddens me that she has absolutely no influence in the Cabinet. She failed to stand up for S4C, she failed to stand up for the defence training college, she failed to stand up for the Anglesey energy island, she failed to stand up for the Severn barrage and she got a terrible deal for Wales out of the comprehensive spending review. I am sorry to say that she is failing Wales abysmally. If she is not going to fight for Welsh jobs, she should not be in her job.

[Mrs Gillan]

I welcome the right hon. Gentleman back to his place on the Front Bench. For a brief moment during the elections for the shadow Cabinet, I thought we were going to be robbed of his charm and wit in Welsh questions, but that is not to be the case.

The Conservative party initiated the legislation on the Welsh language, which helped to put S4C on the map, and I have always supported S4C, both as the shadow Secretary of State for Wales and now as the Secretary of State. The deal for S4C is that it has firm funding for the next four years, and there will be meetings to ensure that it remains independent and continues to make a valuable contribution to Welsh language broadcasting.

[Several hon. Members]

rose—

[Hywel Williams (Arfon) (PC)]

Perhaps I can help the two Front Benchers. In a written answer to a question to the Secretary of State for Culture, Olympics, Media and Sport, I was told that he and others were informed of the S4C decision

“in the days leading up to, or at the time of, the spending review and licence fee settlement announcements.”—[Official Report, 28 October 2010; Vol. 517, c. 413W.]

Can our Secretary of State be a little more precise, or is her memory deficient—tactically or otherwise?

[Mrs Gillan]

No, my memory is not deficient. I assure the hon. Gentleman that S4C has been so important to me that I have been supporting it through its troubles. He will be well aware of the precipitate departure of the chief executive. I remember going out clearly at the Eisteddfod and backing S4C and saying that it had a great broadcasting future and was secure in our hands. It has now secured its financial deal, the details of which will come later.

[Karen Lumley (Redditch) (Con)]

3. What recent discussions she has had with ministerial colleagues on an exemption from Severn bridge toll charges for serving armed forces personnel.

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[Mr David Hanson (Delyn) (Lab)]

4. What plans she has for discussions with the Welsh Assembly Government on the likely effects on child poverty in Wales of the outcomes of the comprehensive spending review.

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

I have regular meetings with the First Minister about a range of issues relevant to Wales. We are firmly committed to tackling poverty and improving the lives of low-income families. Through decisions we have taken in the spending review, we are demonstrating that the best way to tackle child poverty is to address the root causes of poverty—entrenched worklessness, economic dependency and educational failure.

[Mr Hanson]

What representations has the Secretary of State made to her Treasury colleagues about the child trust fund, to which the Assembly continues to contribute? Page 42 of the Conservative party manifesto committed the Government to continuing to support the child trust fund for the poorest third of families, but that commitment is being ripped up by the Bill that is currently before Parliament.

[Mrs Gillan]

The right hon. Gentleman knows that the cuts we are being forced to make are not these Government’s cuts but have arisen from his Government’s mismanagement of the economy. We certainly want to help disadvantaged children now, when they need our help, and it would simply be wrong to defer that help for 18 years. We have had to take difficult decisions regarding the child trust fund, but the record deficit has made it unaffordable. The problem with the economy at the moment is that his Government broke it and we have to fix it.

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

Does the Secretary of State agree that the substantial increase in child tax credits announced in the June Budget will do substantial work to address child poverty not only in Wales, but right across the UK?

[Mrs Gillan]

The hon. Gentleman knows that to change the prospects of all children through the new fairness premium of £7.2 billion over the spending review period is exactly what this Government want to do. It includes a £2.5 billion premium to support the educational development of the poorest pupils.

[Owen Smith (Pontypridd) (Lab)]

It is not simply in respect of child poverty that people in Wales are worried; whole towns in Wales are now worried that the Government have them in their sights. We are used to it, of course, in places such as Merthyr—in the 1930s, the Tories proposed to close it down completely and move people to the colonies—but I wonder whether Wales Office Ministers share the view of the Work and Pensions Secretary that people there, in Merthyr and in the valleys, are workshy and should simply get on a bus and find a job.

[Mrs Gillan]

The hon. Gentleman knows that, with our packages of welfare reform, we are trying to lift people out of lives of dependency. The right hon. Member for Delyn (Mr Hanson) asked about child poverty, which had been increasing under his Government since 2005. Is the hon. Gentleman not ashamed of the previous Labour Government’s record on the matter?

[Mr Speaker]

Order. I think that the Secretary of State will have intended to welcome a new occupant of the Opposition Front Bench.

--- Later in debate ---

[Paul Flynn (Newport West) (Lab)]

7. What recent discussions she has had with the Secretary of State for Business, Innovation and Skills on steps to increase employment opportunities in Wales.

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

May I apologise, Mr Speaker, for not welcoming the hon. Member for Pontypridd (Owen Smith) to the Front Bench? I am so incensed by the previous Government’s treatment of the economy that it quite passed me by, but I would not want any impoliteness, and I welcome him warmly to the Front Bench.

I have had regular discussions regarding increasing employment opportunities in Wales with my right hon. Friend the Secretary of State for Business, Innovation and Skills, and he is as committed as I am to ensuring that the Welsh economy benefits fully from new growth in the economy.

[Paul Flynn]

Wales, and Newport in particular, have provided a successful and welcoming habitat for jobs that were relocated from London. Would it not be a great shame if the present cuts hit disproportionately Welsh areas, resulting in the reversal of that very successful process? Will the Secretary of State renew her efforts to persuade Government that a cut of 250 jobs at the Newport passport office would seem especially devastating if they understood the local situation?

[Mrs Gillan]

The hon. Gentleman knows exactly how I feel about the issues concerning the immigration and passport office, because I was delighted to welcome him and the hon. Member for Newport East (Jessica Morden) into the Department to meet the Minister for Immigration and me to discuss its future. The hon. Gentleman is absolutely right: Newport is a city that ranks third in the Lambert Smith Hampton study of the best office locations outside London. We have businesses there such as Admiral, Wales and West Utilities, and even the HM Prison Service shared service centre. I can assure him that I will make my best efforts to protect all the jobs in Newport that I can, and to promote Newport among my colleagues as a good place to which to relocate.

[Jenny Willott (Cardiff Central) (LD)]

The Driving Standards Agency is planning to close its Cardiff office, with the loss of 80 jobs, partly as a result of the cost of office rental. Since the Government own a huge office estate in south Wales, will the Secretary of State work with colleagues to undertake an audit of that office space to see if it can be better used more efficiently in order to save jobs?

[Mrs Gillan]

I would be very willing to give that undertaking to the hon. Lady. In fact, if she writes to me with any details, I will be pleased to take it up with my colleagues. She should be aware, however, that I am talking to all the Departments right across Whitehall, as I did right at the beginning when I was first appointed, to suggest that Wales is a great place for them to relocate their expensive offices from other parts of the country. [Interruption.]

[Mr Speaker]

As usual at this time on a Wednesday, there are far too many private conversations taking place in the Chamber. It is very unfair on the Member asking the question and the Minister answering it, and it is also rather discourteous to the people of Wales.

--- Later in debate ---

[Nick Smith (Blaenau Gwent) (Lab)]

9. What recent discussions she has had with the Secretary of State for Transport on funding for cross-border rail infrastructure projects; and if she will make a statement.

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

My hon. Friend the Under-Secretary and I have regular meetings with ministerial colleagues to discuss a range of issues affecting Wales, including transport. We recognise that improved rail infrastructure is a vital component for delivering a successful economic recovery in Wales, and we are working hard with the rest of Government to ensure that this is achieved.

[Nick Smith]

Given that the great western main line is one of the UK’s busiest, can the Secretary of State assure me that Labour’s commitment to electrify the line between Bristol, Cardiff and Swansea by 2017 will be honoured?

[Mrs Gillan]

The hon. Gentleman knows that we recognise the importance of enhancing railway infrastructure to meet demand, and that is why the Government are investing £14 billion of the Department for Transport’s £30 billion budget over the next four years in the maintenance of our railways. There will be further announcements on railway investment, and I very much hope that all the representations that have been made on the electrification of that part of the railway will find favour with the Secretary of State for Transport.

[Mr Mark Williams (Ceredigion) (LD)]

Will the Secretary of State turn her attentions also to the transport infrastructure in mid-Wales and the train connection between Aberystwyth and Shrewsbury? We have been waiting a long time for an hourly service and a direct service to London, which requires Assembly funding. Will she look sympathetically on the Assembly’s bids for funding for that train route?

[Mrs Gillan]

I happen to have a meeting with the First Minister tomorrow, so I can assure my colleague that I will raise the matter with him. As he knows, the Welsh Assembly Government and Network Rail have invested £13 million in enhancing the Cambrian line from Aberystwyth to Shrewsbury. That collaboration has led to a huge investment as part of the national stations improvement programme, which I hope my colleague will welcome.

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

10. What discussions she has had with the Secretary of State for Culture, Olympics, Media and Sport on the future funding and management of S4C.

--- Later in debate ---

[Mr Philip Hollobone (Kettering) (Con)]

12. Whether she plans to amend the administration and staff costs in her Department’s budget for 2010-11.

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

My Department’s budget for 2010-11 was fixed as part of the comprehensive spending review. On costs within my Department, since taking office I have been exploring ways to find efficiency savings and have already achieved significant savings on rail travel and hotel accommodation.

[Mr Hollobone]

Does the Secretary of State have any plans to reduce the number of days taken in sick leave by staff in her Department, so that it is the best in the public sector?

[Mrs Gillan]

I am not aware that there are different rates of sick leave in my Department from any other, but I will undertake to my hon. Friend to have a look at the records in my Department and return to the point in writing to him.

[Mr Wayne David (Caerphilly) (Lab)]

Given that the Secretary of State’s Department does not stand up for Wales, what does it do?

[Mrs Gillan]

My Department stands up for Wales, unlike the previous Secretary of State, who stood back from Wales, allowed it to become the poorest nation in the UK and then compared it to Rwanda.

[Neil Parish (Tiverton and Honiton) (Con)]

13. What recent discussions she has had with Welsh Assembly Government Ministers on Government support for the economy in Wales.

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

I have had regular discussions with both the First Minister and the Deputy First Minister on a range of topics, including working together to deliver strong, sustainable growth to the Welsh economy. We will continue to have discussions on supporting home grown enterprise and looking at attracting more foreign companies to invest in Wales. I will be establishing a Wales business advisory group to ensure that I am fully apprised of issues affecting Welsh businesses and what they need to help bring about growth.

[Neil Parish]

Does the Secretary of State agree that streamlining regulation and stimulating the private economy will be essential to the Welsh economy?

[Mrs Gillan]

My hon. Friend needs very little reply except to say that I wholeheartedly agree with him and will do my best.

The Prime Minister was asked—

Budget Responsibility and National Audit Bill

Cheryl Gillan Excerpts

Friday 22nd October 2010 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 a framework power in the Budget Responsibility and National Audit Bill are available in the Vote Office, Library and the Printed Paper Office, and on the Wales Office website: (www.walesoffice.gov.uk).

National Assembly for Wales (Referendum on Law-making Powers)

Cheryl Gillan Excerpts

Thursday 21st October 2010 Written Statements

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

The National Assembly for Wales passed a resolution on 9 February 2010 calling for a referendum under the terms of the Government of Wales Act 2006. The First Minister notified my predecessor of this resolution on 17 February 2010.

I am today laying copies of the National Assembly for Wales Referendum (Assembly Act Provisions) (Referendum Question, Date of Referendum Etc.) Order 2010, the National Assembly for Wales Referendum (Assembly Act Provisions) (Limit on Referendum Expenses Etc.) Order 2010, and the National Assembly for Wales (Legislative Competence) (Amendment of Schedule 7 to the Government of Wales Act 2006) Order 2010.

I have also placed in the Library of both Houses a copy of the Electoral Commission’s report of its views on the proposed question in the referendum on law-making powers of the National Assembly for Wales. This report was published on 2 September 2010, and the full report and a summary are available on the commission’s website at www.electoralcommission.org.uk.

The draft referendum order contains the bulk of the provision relating to the running of the referendum. It specifies the date of the referendum (article 3) and the referendum question and preceding statement (article 4).

I can confirm that the referendum will be held on 3 March 2011 subject to approval by Parliament, the National Assembly for Wales and approval by Her Majesty the Queen in Council.

With regard to the referendum question which will appear in English and Welsh on the ballot paper, I had a statutory duty to consult the Electoral Commission on the question that is included in the draft referendum order. I referred a question proposed by the Wales Office Referendum Project Board to the Electoral Commission on 23 June 2010. The commission conducted a thorough assessment of the question and its preceding statement, including carrying out public opinion research, gathering views from interested parties and seeking advice from experts on plain language and accessibility in English and Welsh. Its findings and recommendations are contained in the report published on 2 September 2010, referred to above.

I have already welcomed the report which made clear that it is a far from easy matter to draft a question for this referendum. During the testing process, the commission discovered that two factors in particular contribute to making it a difficult task: the complexity of the subject matter of the referendum, and the generally low level of public awareness and understanding of issues and terminology relating to it.

However, with the benefit of the public opinion research and consultation that the Electoral Commission undertook to assess the intelligibility of the proposed question, they were able to suggest a question and preceding statement that would address, as far as possible, the issues they had discovered in terms of complexity and low levels of awareness. I discussed the commission’s report, its findings and recommendations with the First Minister and the Deputy First Minister and we agreed to accept the commission’s recommended revision of the question and its preamble which is as follows:

The National Assembly for Wales: what happens at the moment;

The Assembly has powers to make laws on 20 subject areas, such as:

agriculture

education

the environment

health

housing

local government

In each subject area, the Assembly can make laws on some matters, but not others. To make laws on any of these other matters, the Assembly must ask the UK Parliament for its agreement. The UK Parliament then decides each time whether or not the Assembly can make these laws.

The Assembly cannot make laws on subject areas such as defence, tax or welfare benefits, whatever the result of this vote.

Question;

Do you want the Assembly now to be able to make laws on all matters in the 20 subject areas it has powers for?

If most voters vote “yes”

The Assembly will be able to make laws on all matters in the 20 subject areas it has powers for, without needing the UK Parliament’s agreement.

If most voters vote “no”

What happens at the moment will continue.

Cynulliad Cenedlaethol Cymru: yr hyn sy’n digwydd ar hyn o bryd;

Mae gan y Cynulliad bwerau i lunio deddfau mewn 20 maes pwnc, megis:

amaethyddiaeth

addysg

yr amgylchedd

iechyd

tai

llywodraeth leol

Mae’r Cynulliad yn gallu llunio deddfau ar rai materion ym mhob maes pwnc ond nid ar faterion eraill. Er mwyn llunio deddfau ar unrhywun o’r materion eraill hyn, mae’n rhaid i’r Cynulliad ofyn am gytundeb Senedd y DU. Yna, mae Senedd y DU yn penderfynu bob tro a gaiff y Cynulliad lunio’r deddfau hyn neu beidio.

Ni all y Cynulliad lunio deddfau mewn meysydd pwnc fel amddiffyn, trethi neu fudd-daliadau lles, beth bynnag fo canlyniad y bleidlais hon.

Cwestiwn;

A ydych yn dymuno i’r Cynulliad allu llunio deddfau ar bob mater yn yr 20 maes pwnc y mae ganddo bwerau ynddynt?

Os bydd y rhan fwyaf o bleidleiswyr yn pleidleisio “ydw”

Bydd y Cynulliad yn gallu llunio deddfau ar bob mater yn yr 20 maes pwnc y mae ganddo bwerau ynddynt, heb orfod cael cytundeb Senedd y DU.

Os bydd y rhan fwyaf o bleidleiswyr yn pleidleisio “nac ydw”

Bydd yr hyn sy’n digwydd ar hyn o bryd yn parhau.

National Assembly for Wales (Referendum on Law-making Powers)

Cheryl Gillan Excerpts

Thursday 9th September 2010 Written Statements

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

The National Assembly for Wales passed a resolution on 9 February 2010 calling for a referendum under the terms of the Government of Wales Act 2006. The First Minister notified my predecessor of this resolution on 17 February 2010.

I have a statutory duty to consult the Electoral Commission on the question that will be included in the draft referendum order. I referred a question proposed by the Wales Office Referendum Project Board to the Electoral Commission on 23 June 2010. The commission has conducted a thorough assessment of the preamble and question, including carrying out public opinion research, gathering views from interested parties and seeking advice from experts on plain language and accessibility in English and Welsh. It published its findings and recommendations on 2 September 2010.

I welcome the objectivity and independence that the Electoral Commission has brought to the process. It has suggested changes that take into account the generally low level of public awareness of issues and terminology relating to the referendum encountered during the testing process. I have discussed the conclusions of the report with the First Minister and the Deputy First Minister and, with their agreement, have decided to accept the commission’s recommended revision of the question and its preamble.

I will lay the draft order before Parliament shortly for consideration by both Houses, and my intention remains for the referendum in Wales to take place in the first quarter of next year.

Oral Answers to Questions

Cheryl Gillan Excerpts

Wednesday 8th September 2010 Commons Chamber

[Hywel Williams (Arfon) (PC)]

2. What recent discussions she has had with Ministerial colleagues on the review of the economic impact of S4C.

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

I have had several discussions with my right hon. Friend the Secretary of State for Culture, Media and Sport on the importance of S4C and Welsh broadcasting in general, and I will continue to do so to ensure that Wales receives a broad range of programmes about and for the people of Wales. I have also had discussions with the senior management at S4C.

[Hywel Williams]

I thank the Secretary of State for her reply. Does she agree that given its programming for children, its substantial forward spending on planned programmes and the profound sociolinguistic effect that it has, S4C is in no way just another television channel that happens to be in Welsh? It is not a Welsh version of Dave TV, nice thought that is.

[Mrs Gillan]

I agree with the hon. Gentleman. From what I have seen of S4C, it is a television station that continues to meet the needs of Welsh speakers by providing programmes and services through the medium of Welsh. It is fair to acknowledge that it is dealing with some internal problems at the moment, but I have been impressed with the range of services that it provides, particularly to people who are learning Welsh. He may know that I visited the set of “Rownd a Rownd”, where I was extremely impressed by how we are bringing on young acting talent in Wales through that soap opera. I was impressed with the cast and the production team working on it.

[Mr Mark Williams (Ceredigion) (LD)]

The Secretary of State will also be aware of the significance of the independent TV production sector and the importance of its relationship with S4C. The sector was recognised in a Select Committee report in the previous Parliament as one in which Wales excels. Extensive cuts could jeopardise that. Will she continue to make the robust case to the Department for Culture, Media and Sport about the scale of the potential cuts?

[Mrs Gillan]

I will continue to do that on a regular basis. One thing that is so exciting about the Welsh economy is our huge potential in the creative industries. There is tremendous potential between the BBC and ITV, which is expanding its news coverage, and S4C, but our broadcasting industry must face the reality of the budget within which we must work, thanks to the previous Government’s mismanagement of the economy. However, I stress that the television industry is the place for independent companies to do business.

[Mark Tami (Alyn and Deeside) (Lab)]

3. What discussions she has had with the Secretary of State for Defence on the A400M military transport aircraft and Airbus in Wales.

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

I have already held discussions with my right hon. Friend the Defence Secretary on a number of military issues that affect Wales, and I have arranged to speak to him again during this two-week sitting of Parliament. I also wrote to him specifically on that issue in July, highlighting the importance of Airbus to the Welsh economy.

[Mark Tami]

During the election, a number of Tory candidates in north Wales published leaflets that contained a pledge from the then Leader of the Opposition, who is now the Prime Minister, that that project would go ahead. Is that pledge still valid? Is it worth anything?

[Mrs Gillan]

I know that the hon. Gentleman takes a great interest in such matters, and so he should, because Airbus employs, I believe, more than 6,500 people at the Broughton plant in his constituency. The order book for the A400M currently looks very healthy, with orders for more than 180 aircraft worldwide and at least 22 for the UK. I am confident that the position is secure.

[Albert Owen (Ynys Môn) (Lab)]

The Secretary of State is right to concentrate on the importance of military activity and training in Wales. Will she therefore ensure that when she next meets the Defence Secretary, she stands up for the RAF in Wales, and bases such as RAF Valley, which has had substantial investment in the past 10 years? They serve the economy locally, but they will also serve our country well in future.

[Mrs Gillan]

The hon. Gentleman should know that I have deep affection for RAF Valley, having done my armed services parliamentary fellowship scheme with the RAF. I was even privileged to sit in the back seat of several fast jets, courtesy of some first-class pilots. The RAF has a special place in my heart, and I can certainly assure him that I will always speak up loudly for RAF Valley.

[Jessica Morden (Newport East) (Lab)]

4. What recent discussions she has had with the Secretary of State for the Home Department on policing in Wales.

--- Later in debate ---

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

6. What recent discussions she has had with ministerial colleagues, the Welsh Assembly Government and CBI Wales on support for Welsh businesses.

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

I have regular discussions with many ministerial colleagues to ensure that we support Welsh businesses. I have already met with CBI Wales twice, and I have quarterly meetings planned with the CBI along with other business organisations in Wales, so that the issues affecting individual companies are fed directly into coalition Government policy.

[Alun Cairns]

Over the last 10 years, Wales became the poorest part of the United Kingdom under the Administration of Labour both here at Westminster and in Cardiff bay. A recent Oxford Economics report suggests that over the next five years Wales will create only 4,000 new jobs. Given that Wales will have the same macro-economic conditions as every other part of the UK, is not that a sad indictment of the Administration in Cardiff bay and the legacy of Labour?

[Mrs Gillan]

My hon. Friend has experience of the Welsh Assembly Government and the Welsh Assembly, so I will leave his comments to stand. I agree with him that the situation that we have inherited is shocking across the UK, and it is especially sad in Wales because gross value added per head is the lowest out of all the UK nations and has been that way since 1998. However, I want to be optimistic about the Welsh economy and I have recently visited some very successful businesses that are investing in Wales and looking at creating jobs, including Corus, Sharp and Ultrapharm—the latter is producing wheat-free healthy lifestyle products for Marks and Spencer. I have been impressed by the number of jobs that are starting to appear in the Welsh economy, and I want to encourage more businesses to come and do business in Wales.

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

With the public sector cuts inevitably having a disproportionate effect on the Welsh economy, what countervailing measures is the right hon. Lady arguing for with the Treasury to stimulate private sector growth in Wales?

[Mrs Gillan]

I am sad that the hon. Gentleman has to ask such a question, but he knows that he has to because the last Government left this economy in tatters, and it has fallen to this coalition Government to put the economy back together again. As he well knows, we are providing an environment in which business can do business in the UK. We are reducing corporation tax by a penny each year, which will give us one of the lowest corporation tax regimes in the European Union, we have reduced the taxation regime for small companies, and we have incentives on national insurance for entrepreneurs setting up businesses. I can assure him that we are doing everything that we can to create a healthy environment in which businesses and private business can prosper.

[Nia Griffith (Llanelli) (Lab)]

What assessment has the Minister made of the impact on private businesses in Wales of the loss of public service contracts and purchasing power caused by redundancies, cuts to rises in benefits and the proposed new VAT regime?

[Mrs Gillan]

The hon. Lady knows that the deficit needs to be tackled immediately, and it was her Government who left us in this dire financial situation. Of course, I cannot pre-empt anything that might happen in the comprehensive spending review, but I recognise the vital role that public sector contracts play in the prosperity of businesses across Wales, and I know that the economy is heavily dependent on the public sector, so I have already made representations to the Treasury, and will continue to do so. However, I am afraid that the financial mess we are in was the responsibility of her party.

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

7. What recent discussions she has had with the First Minister on the effect on levels of employment in Wales of proposed reductions in public expenditure.

--- Later in debate ---

[Robert Halfon (Harlow) (Con)]

8. What discussions she has had with the First Minister and ministerial colleagues on the proposed referendum on the law-making powers of the National Assembly for Wales.

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

I have had regular discussions with the First Minister and ministerial colleagues on the proposed referendum on the law-making powers of the National Assembly for Wales. Indeed, I discussed it with the First Minister and the Deputy First Minister on Monday.

[Robert Halfon]

I thank my right hon. Friend for her reply. Does she agree that, as devolution develops, we will need a fair constitutional settlement across the United Kingdom, and is it not the Government’s intention, therefore, to address English votes for English laws, and indeed English and Welsh votes for English and Welsh laws?

[Mrs Gillan]

My hon. Friend knows that our approach to constitutional matters is informed and underpinned by our commitment to the Union and devolution and our conviction that power should rest in the hands of those we serve. Indeed, we have committed, in our programme of government, to establishing a commission to consider what has become known as the West Lothian question, and we are working to take that forward.

[Ian Lucas (Wrexham) (Lab)]

When the Secretary of State eventually comes up with a coherent and intelligible question for the referendum on further powers for the Assembly, will she be asking the Electoral Commission to carry out a further consultation on the question she will place before the House?

[Mrs Gillan]

I feel that I should say to the hon. Gentleman, “Listen very carefully, I will say this only once,” because I heard an interview that he gave on the radio in which it appeared that he had not listened to the answers that I gave at the last Welsh questions. Can I just tell him that I have—[Interruption.]

[Mr Speaker]

Order. I apologise for interrupting the Secretary of State, but there are far too many noisy private conservations taking place. I want to hear the Ministers from the Front Bench, and I want to hear right hon. and hon. Members asking their questions.

[Mrs Gillan]

I am very grateful to the Electoral Commission for its report and the 10 weeks of examination that it gave to the question that was designed by the project board. On Monday I worked with the First Minister and the Deputy First Minister, and I have considered its findings. We have all agreed that we should accept its findings and take forward the preamble and the question that has been put forward, on an objective and independent basis, by the Electoral Commission, and I shall be making a further statement to Parliament.

[Chris Evans (Islwyn) (Lab/Co-op)]

9. What discussions she has had with the Secretary of State for the Home Department on the effects on front-line policing in Wales of planned expenditure reductions. [Official Report, 16 September 2010, Vol. 515, c. 3-4MC.]

--- Later in debate ---

[Paul Flynn (Newport West) (Lab)]

12. What recent discussions she has had on opportunities for the leisure industry in south-east Wales arising from the forthcoming Ryder cup.

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

I have recently visited a number of venues associated with the leisure industry in Wales, and I have seen at first hand some of the preparations being made for the 2010 Ryder cup. I have been impressed by all the hard work that will make this event a great Welsh success, and I am sure that, like the people of Newport, we are all anxious to see this fantastic event tee off in three weeks’ time in Wales.

[Paul Flynn]

This is a wonderful, unique opportunity for us to show off our city of Newport and the rest of Wales. Will the Minister guarantee that she will do everything she can to ensure that there is a full legacy from the Ryder cup for the young people of Newport, Wales and the rest of the United Kingdom?

[Mrs Gillan]

I agree entirely with the hon. Gentleman. The Ryder cup is going to be fantastic in Wales and I would urge Members to encourage their constituents who enjoy golf to visit this fantastic venue. The legacy fund already involves a £2 million investment by the Welsh Assembly Government, and it has so far distributed £1.5 million in grants for various projects across Wales. This is an event for Wales that all the political parties can come together and support wholeheartedly.

The Prime Minister was asked—

Government of Wales Act 2006 (Section 104)

Cheryl Gillan Excerpts

Tuesday 15th June 2010 Written Statements

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

The National Assembly for Wales passed a resolution on 9 February 2010 calling for a referendum under the terms of the Government of Wales Act 2006. The First Minister notified my predecessor of this resolution on 17 February 2010.

I have a statutory duty to respond to that notice within 120 days of the date of the notice, either by laying a draft referendum order, or refusing to do so and giving reasons for the refusal.

I have today notified the First Minister that I am unable to lay a draft referendum order before Parliament within the 120 days, and have set out my reasons. I have also made clear that our aim is for a referendum to take place before the end of the first quarter of next year.

A copy of my letter to the First Minister is available in the Vote Office and has also been placed in the House of Commons Library.