Government Policies (Wales) Debate

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Department: Wales Office

Government Policies (Wales)

Chris Ruane Excerpts
Wednesday 26th November 2014

(9 years, 5 months ago)

Commons Chamber
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Owen Smith Portrait Owen Smith
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No. We had campaigned for devolution for 100 years, and it was absolutely about changing the accountability to the Welsh people, making all the obvious constitutional changes. However, for many of us on the left in Wales it was also about guaranteeing a Government who would to a greater extent reflect our values and defend Welsh people against the values of the hon. Gentleman’s party and this Government. Four and a half years on from the return of a Tory Government, we now have an opportunity to measure exactly what the impact of that Government has been and, six months from the next election, think hard about how effective those defences have been.

Chris Ruane Portrait Chris Ruane (Vale of Clwyd) (Lab)
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I thank my hon. Friend for giving way—

Ian C. Lucas Portrait Ian Lucas (Wrexham) (Lab)
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Your right hon. Friend.

Chris Ruane Portrait Chris Ruane
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I thank my right hon. Friend. [Interruption.] If Labour had truly wanted to dominate Wales in 1997, when we had a majority of 180, would we not have introduced first past the post, rather than proportional representation?

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Owen Smith Portrait Owen Smith
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Yes. All those things contribute enormously: they are all symptoms of the widespread, systemic problem in our society and economy, which this Tory Government’s current policies are unfortunately making worse. In fact, the Welsh Government have calculated that by next year, £1 billion will have been taken out of the Welsh economy directly as a result of the welfare changes made by this Tory Government. It is estimated that the average annual loss per working-age adult in Wales will be £500 by 2015-16. The bedroom tax, the most pernicious and cruel example of this Government’s welfare policies, hits Wales harder than anywhere else in the UK. The Department for Work and Pensions statistics confirm as much—more than 40,000 Welsh men and women hit by the bedroom tax, 26,000 of those, disabled.

Chris Ruane Portrait Chris Ruane
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My hon. Friend talks about averages in Wales being about £540. Is he aware that in Rhyl West—until this morning the poorest ward in Wales, but it has been overtaken by a Caerphilly ward—the actual hit for those people, the poorest in Wales, was £1,450, as opposed to the richer ward of Efenechtyd in the south of the county, where it was only £270, so the impact on those poorest people in Wales has been five times greater?

Owen Smith Portrait Owen Smith
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I am grateful to my hon. Friend for his intervention. Yes, of course that is right. The evidence is right before our eyes: over 50% of Welsh local authorities have had to use top-up discretionary housing payments to deal with the volume of problems created by the changes to welfare in Wales, versus just 27% in England. That is more evidence that Wales is being hit harder on the watch of the Secretary of State and the Minister than anywhere else in the UK.

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Stephen Crabb Portrait Stephen Crabb
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I am not sure that I follow the hon. Gentleman’s argument. If he is expressing concern about the deficit, let me ask him why, for the last four and a half years, he and his colleagues have pursued policies with the exact objective of increasing the deficit and increasing the debt, and have argued and voted against every measure we have tried to introduce to restore stability and sanity to our national finances.

Effective transport links are a vital part of any modern economy, and few areas in the United Kingdom are more in need of the improved commuter costs, reduced travel times and more frequent train services that electrification will bring than the valleys communities. Yet again, investment has Welsh people at its heart. The Government’s programme of investment in rail infrastructure in Wales and throughout the UK is one of the most ambitious since the development of the rail network in the 19th century. By 2019, we shall have put in place more than 870 miles of electrification, whereas Labour Governments have managed less than eight miles.

Rail electrification is only one example of the constructive and co-operative relationship that we have struck with the Welsh Government to help deliver for the people of Wales. In contrast to the Labour party in Westminster, we do not posture and play silly games; we roll up our sleeves, put partisan interest aside and do our very best to help get Wales moving again.

Opposition Members may recall the NATO summit in Newport just two months ago, which was a stunning success for Wales—a great example of two Governments working in co-operation to deliver for the people of Wales. We hosted the largest gathering of world leaders in Britain’s history, putting Wales on the world stage. We worked with local business, local councils—I pay particular tribute to Newport city and Cardiff city councils—the Welsh Government and the local people, and they all delivered superbly. NATO showcased the excellent hospitality Wales has to offer and created jobs for local people, and this success paved the way for last week’s investment summit—another example of this Government working positively with the Welsh Government in the interests of Wales.

It could not be any clearer: the UK Government are putting business at the forefront of the recovery and they are delivering. I refuse to accept the Opposition’s argument that the private sector in Wales is too weak for the rebalancing of the economy to work, and I certainly refuse to accept the constant bashing the shadow Secretary of State delivers in respect of Welsh businesses.

These two historic events—the NATO summit in September and the investment summit last week—should convince the shadow Secretary of State that Wales can deliver on a scale matching any other nation in the world. Joint working on this scale demonstrates how the Welsh and UK Governments can co-operate and collaborate in the interests of the people of Wales.

Securing good quality jobs for people in Wales is a priority shared by both the UK and Welsh Administrations. Airbus in north Wales continues to be a shining example of the quality of jobs and the skills sets Wales has on offer. I was therefore delighted that investment from both Governments last week has secured 6,000 jobs in the long term at the firm’s factory in Flintshire, in the constituency of the hon. Member for Alyn and Deeside (Mark Tami).

Chris Ruane Portrait Chris Ruane
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Does the right hon. Gentleman agree that the rise of Airbus, out of the ashes of the closure of Shotton steel works, was down to actions taken by the Labour Government in 1998, when we gave Airbus £500 million in launch aid? That was an example of private and public co-operation.

Stephen Crabb Portrait Stephen Crabb
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Airbus is deeply appreciative of the efforts of Governments of all party shades, and is particularly appreciative at the moment of the way the Governments in London and Cardiff are working together to strengthen it and see it secure for the long term.

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Mark Tami Portrait Mark Tami
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Does the hon. Gentleman accept that for a lot of us in north Wales our children’s hospital is on the English side of the border? [Interruption.] Our heart hospital.

Chris Ruane Portrait Chris Ruane
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And Gobowen.

Mark Tami Portrait Mark Tami
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And Gobowen, as my hon. Friend says. Will the hon. Gentleman accept that these people are not flying across the border to get better health care—it is our health service, and that is why we should have the right to vote on it?

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Chris Ruane Portrait Chris Ruane (Vale of Clwyd) (Lab)
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I wish to talk about the impact of £1.5 billion of cuts on my constituents. There are the social security cuts and the bedroom tax, but the national cuts by the UK Government to the police, the Department for Work and Pensions and taxation are also having a terrible impact on the communities that I represent. The way that that has been translated into local government cuts is now becoming properly known in Vale of Clwyd. The Welsh Government have tried to protect local authorities from the worst impacts of central Government cuts over the past two or three years, but the hatchet has now fallen. I want to give some graphic illustrations of how that is affecting my constituents.

The cuts that Denbighshire county council will discuss next week fall into two categories. The first cuts relate to the quality of life. The cuts include removing subsidies to the Prestatyn Scala cinema and arts centre, the Rhyl Pavilion theatre—a cut of £350,000—and the Ruthin Craft centre. The cuts involve library services, such as free access to books and audio tapes; bus routes that are being reduced or closed so people living in rural isolation cannot access the minimal local services on offer; and flower beds that will be grassed or concreted over. People may say that those are little frivolous things in life that we do not need, but for me life is about allowing such things to flourish, and the cuts to be implemented in Denbighshire will diminish them.

Let us come on to the really meaty cuts that are being discussed in Denbighshire, such as the reduction in street lighting and the stopping of CCTV. Proper lighting and CCTV are two of the most effective anti-crime measures, but they will be dramatically reduced or abolished. There will be a £200,000 cut to the welfare rights unit in Denbighshire county council, despite the fact that it brought £6 million in to the local authority last year and that £35 million has still not been claimed in Denbighshire. The cuts include reducing equipment for disabled children, and charging their parents for facilities and services. The pest control unit will be closed, so we will not be able to put down the rats, mice and vermin that often infest our poorer wards. Grants for school uniforms will be ended, and those for taking children on trips will be cut. There will be cuts to the young people’s counselling service—for children who are going through turmoil—although 32.3% of those aged 15 to 25 have one or more psychiatric condition, and services in schools to help to counter that will be diminished or curtailed. There are cutbacks to the educational psychology team and to music education; library services will be stopped; and 25% of public toilets will be closed or cut back.

Those are the results of the cuts coming from the Conservative party and their Liberal Democrat friends in the coalition. I do not blame the officers of Denbighshire county council. In fact, the chief executive officer, Mohammed Mehmet, is excellent and has helped to turn around Denbighshire. I do not blame the political leadership, because Hugh Evans OBE is a good political leader. The people I blame are now sitting on the Government Front Bench. They are not listening, just as Ministers are not listening at national level.

Those are the impacts on my community, and they affect the poorest. I want to turn to the benefit cuts in my constituency, and I pay tribute to Steve Fothergill and Christina Beatty from Sheffield Hallam university, who have given me bespoke statistics for my constituency. In Rhyl West, which until this morning was the poorest ward in Wales, the actual cuts for working-age people are £1,420 a year. The figure for the richest ward in Denbighshire, Llanfair Dyffryn Clwyd, is £270, so the cuts are almost five times higher in the poorest ward than in one of the richest. This is about values, which we talked about earlier, because it is about punishing and demonising the poor and the disabled. There are five hate crimes, but the one that has increased in recent years is hate crime towards the disabled, because of the way in which they have been portrayed by the Conservative party and its friends in the media. The cuts are absolutely terrible. In Rhyl South West, the council ward in which I was brought up, the cuts to people of working age amount to £860. How are families supposed to cope with that level of cuts? How? Would a Minister like to intervene on that? No—silence once again.

The bedroom tax was supposed to drive single people out of houses with two bedrooms and into smaller houses. In Denbighshire, 700 people qualified for the bedroom tax, but the number who have moved is minimal. People would prefer to take the hit of up to £25 a week than be shunted out of the community in which they have grown up. Relatives of mine who have lived on a council estate for 54 years and who are embedded in the community have been told to leave—to get out of the home that they were born in. I am proud that on day one of a Labour Government next May, the bedroom tax is one of the first things we will get rid of.

The Ministers on the Treasury Bench should take those messages back to the Cabinet and the Prime Minister. They should let them know that it is not just in the Vale of Clwyd that what I have described is happening, but across the country, and it is destroying our British way of life.

Mark Williams Portrait Mr Mark Williams (Ceredigion) (LD)
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I am pleased to say a few words in this debate. Like the hon. Member for Vale of Clwyd (Chris Ruane), I will focus on my constituency. In particular, I will look at some of the challenges that face rural communities. My constituency has some of the most rural communities imaginable. I never lose sight of the fact that there are 600 family farms and 147 villages across the Ceredigion constituency. I will look at the three aspects of the motion: energy prices, jobs and growth in the economy, and, of course, the spare room subsidy or bedroom tax.

Chris Ruane Portrait Chris Ruane
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Which one?

Mark Williams Portrait Mr Williams
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Those of us who have concerns describe it as the bedroom tax; others call it the spare room subsidy. I will stick to the bedroom tax, for reasons that will become apparent.

First, I want to talk about energy prices. There is no doubt that my constituents are feeling very short changed, quite literally, by the energy providers. They are aggrieved that there are few alternatives, if any, for people who live in communities that are off grid. They are then told remorselessly that it is simply a matter of switching providers. Most of my constituency is off grid, so most of my constituents remain subject to the monopolistic practices of energy companies. There is simply no option to shop around.

Off-grid customers are left out of many initiatives. Analysis undertaken by Calor Gas showed that most people are merrily—or less merrily—paying £40 a year for energy efficiency schemes, but that they get nothing back through reductions in their bills. Energy companies charge levies on household bills to fund insulation and new boilers in the homes of the vulnerable and those who live in low-income communities where buildings are hard to treat. We know about the history of the housing stock in Wales, and particularly in rural Wales, yet only 1,443 homes out of 1.5 million have benefited from price reductions. Off-grid gas customers are missing out on the promises of new efficient boilers for their homes. Although all customers are subjected to the same charges, the research suggests that the benefits are not reaching rural households. Not only are they not seeing the benefits, but the costs of energy have historically been much higher. I have been making this point for nearly 10 years, including under the last Government, but those of us in rural areas are still waiting and anticipating greater action.

We are told that the key is to boost the collective purchasing power of customers and that we should all join oil syndicates. Many of us have done that. Joining oil syndicates and trying to negotiate reductions in the cost of domestic heating oil is one of the few options available to my constituents in Ceredigion. I have lost count of the number of times constituents have come to my surgery to pose the problem, “How on earth can I afford the minimal amount of oil that I need to put in the tank to heat my home?” That is food for thought for all of us. I commend Ceredigion county council and Ymlaen Ceredigion, which is an excellent organisation, for working with the National Assembly on a project called Club Cosy to develop the system of oil syndicates across the county and for overseeing the 10 syndicates that already exist.

Of course, no one would be against the opportunity of a reduction in bills during the freeze period, but my concern about the Labour policy is that in the immediate period before and the immediate aftermath constituents would face—