Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

James Davies Excerpts
Wednesday 5th July 2023

(9 months, 3 weeks ago)

Commons Chamber
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Alexander Stafford Portrait Alexander Stafford (Rother Valley) (Con)
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11. What recent discussions he has had with Cabinet colleagues on new nuclear power sites in Wales.

James Davies Portrait The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
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To continue the topic from the previous question, there are regular discussions with Cabinet colleagues on the potential for new nuclear in Wales. This Government are launching Great British Nuclear to support our ambition to ramp up nuclear capacity in the UK to up to 24 GW by 2050. GBN is actively working with the Government on access to potential sites for new nuclear projects.

Bob Blackman Portrait Bob Blackman
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Nuclear power has an important part to play in a balanced energy policy to provide energy security. Does my hon. Friend agree that Wylfa is an ideal site not only to continue generating nuclear power, but to expand beyond it, because the reality is that without improving and continuing that site, nuclear power has to come to Wales?

James Davies Portrait Dr Davies
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I agree with my hon. Friend. Wylfa is one of the best sites in this country, if not in Europe, for nuclear power generation due to its optimal location and geology. I am confident that the site’s potential to support our 24 GW target can be utilised. I know it is a site that GBN is very interested in.

Alexander Stafford Portrait Alexander Stafford
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Nuclear power is an excellent and much-needed source of power, but when demand for energy decreases, that power is often wasted. Has the Minister looked at any new Welsh nuclear power plants producing so-called pink hydrogen at times when electricity demands are low, so that we are not wasting that energy?

James Davies Portrait Dr Davies
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We recognise the important role of both nuclear energy and hydrogen in reaching our net zero goals. We are committed to a nuclear future for Wales and so far this year I have visited the Wylfa site and Bangor University’s Nuclear Futures Institute. My hon. Friend is right to mention the importance of storing energy effectively. Our 2021 hydrogen strategy laid out our intention to explore the use of electricity and heat from nuclear power stations to produce pink hydrogen.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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Will the Minister confirm that there is not an approved small modular reactor design in the UK yet, so talking of installing SMRs at Wylfa and elsewhere is just fantasy?

James Davies Portrait Dr Davies
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The hon. Gentleman mentioned SMRs; I know Great British Nuclear is looking into the importance of those to our future net zero contributions and there will be sites, I hope, across the United Kingdom.

Flick Drummond Portrait Mrs Flick Drummond (Meon Valley) (Con)
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5. What recent discussions he has had with Cabinet colleagues on the delivery of freeports in Wales.

James Davies Portrait The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
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The Secretary of State was delighted recently to announce two successful freeports in Wales—the Celtic freeport and Anglesey freeport—which will each be supported by £26 million of Government funding. We have regular discussions with Cabinet colleagues on the delivery of the two Welsh freeports, which we aim to bring into operation as soon as possible.

Flick Drummond Portrait Mrs Drummond
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I have been a keen supporter of the new Solent freeport joining my Meon Valley constituency. I know the economic benefits that freeports can bring to businesses and workers. Can my hon. Friend assure me that he is doing everything he can to ensure that the two freeport bids in Wales move ahead swiftly to benefit the communities they serve?

James Davies Portrait Dr Davies
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I certainly can. The two new freeports will help to level up north-west and south-west Wales and bring new high-skilled jobs to successful areas. They will become drivers of growth and employment in their areas, acting as hubs for regeneration, innovation and global trade. I understand my hon. Friend’s desire to see rapid progress. Both the UK Government and the Welsh Government will work closely with the successful bidders to develop their outline business case so that we can understand the benefits, costs and the most beneficial intervention options.

Stephen Kinnock Portrait Stephen Kinnock (Aberavon) (Lab)
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The Celtic freeport bid is based on floating offshore wind. The floating offshore wind manufacturing investment scheme is a vital programme to get the infrastructure in the port ready for the fabrication of substructures and turbines for floating offshore wind. As the voice of Wales in the Cabinet, what steps is the Secretary of State taking with Cabinet colleagues to secure FLOWMIS to maximise the benefits of the Celtic sea freeport?

James Davies Portrait Dr Davies
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The hon. Gentleman is absolutely right about that. He may also be aware of yesterday’s announcement of the leasing area in the Celtic sea for floating offshore wind. My right hon. Friend the Secretary of State has regular meetings with stakeholders, as do I, about FLOWMIS and the necessary infrastructure to bring that into being.

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James Davies Portrait The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
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I have regular discussions with Department for Transport colleagues on a wide range of transport matters. Wales receives proportionally greater funding than the rest of Great Britain. In fact, figures from the 2021-22 financial year demonstrate that Government funding of the operational railway was 32.1p per kilometre travelled in England, 57.3p in Scotland and 59.3p in Wales.

Rob Roberts Portrait Mr Roberts
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When I asked the Department for Transport about the maintenance funding spent on the Wales route, it told me that it gets 4% or 5% of the spending and it equates to 4% of the network, so it must be fair. The problem is that the figures were based on train miles rather than track length, and the train miles are always lower in Wales because of a lack of investment in infrastructure. The track length is actually 11%, not 4%. Will the Minister make representations to the DFT to increase rail spending proportionately to make it a fairer settlement?

James Davies Portrait Dr Davies
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The hon. Member is right to reference investment in rail in north Wales. Growth Track 360 has pressed for that hard—I have been involved with that, as he has—and the North Wales Transport Commission has recently outlined similar projects. He will be aware of the Union connectivity review development funding pot that has been available, and the entry in RNEP for the north Wales coast main line in relation to line speeds.

Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con)
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9. What steps he is taking to increase levels of investment in Wales.

James Davies Portrait The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
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Foreign investment created 3,062 jobs over the last year. With the number of FDI projects also on the rise, that shows that more and more investors are looking to Wales. This is testament to the £52 million that we are providing to support two new freeports, our commitment to delivering at least one investment zone in Wales, and the £1 billion we are investing in the next decade to boost the UK’s global strengths in semiconductors.

Andrew Selous Portrait Andrew Selous
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Does the Minister agree that supply chain businesses need

“a modern, functioning road network to keep goods moving efficiently”—

whether they are on the M4, the A55 or elsewhere—and that the failure of the Welsh Government to commit to this is a “body blow”, according to the Road Haulage Association director, Geraint Davies?

James Davies Portrait Dr Davies
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I absolutely do; my hon. Friend makes an excellent point. The Welsh Government’s response to the roads review is more of a roadblock, sadly. Their opposition to the M4 relief road and other schemes continues to hold the Welsh economy back. The Welsh Government’s impact assessment suggests that the impact of the 20-mile-an-hour default speed limit could be as much as £4.5 billion. The Welsh Government, I am afraid, are advertising that Wales is closed for business.

Nia Griffith Portrait Dame Nia Griffith (Llanelli) (Lab)
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The automotive sector contributes significantly to the economy in Wales, including Gestamp in my constituency, where investment in the latest technology to make lighter, tougher bodywork parts contributes to the safety and energy efficiency of vehicles, including new electric vehicles. However, with the US and the EU offering big incentives to companies to invest in new green technologies, what talks has the Minister had with ministerial colleagues about offering similar incentives to get the investment from automotive companies to ensure that we keep a vibrant automotive sector?

James Davies Portrait Dr Davies
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I know that that question is very important to the hon. Member and her constituency. I point her in the direction of the growth deals, which have an important role to play, and regular ongoing discussions are held between the Secretary of State, the Wales Office and other Government Departments.

Michael Fabricant Portrait Michael Fabricant (Lichfield) (Con)
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Investment in Wales is also conditional on there being adequate healthcare. Is my hon. Friend aware that, in Tywyn on the west coast of Wales, a hospital that was built only six or seven years ago has now closed? People in that area have to travel many, many miles to get healthcare when it is needed.

James Davies Portrait Dr Davies
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I thank my hon. Friend for raising that issue. Clearly, the provision of healthcare services in rural areas is often very difficult, but he will be aware of the particular challenges in Wales, especially north Wales, over the availability of safe and accessible healthcare services. He is right to raise that point.

Christina Rees Portrait Christina Rees (Neath) (Ind)
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As a GP, the Minister knows the value of community engagement. Will he ask the Home Secretary to increase investment in policing in Wales to ensure that there is an effective response to tackling crime when bad things happen?

James Davies Portrait Dr Davies
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The hon. Member will be aware that there are more police officers in all the forces in Wales than ever before. The Government and the Home Office have been investing in the uplift programme and ensuring that there is a strong police presence across Wales.

Kirsten Oswald Portrait Kirsten Oswald (East Renfrewshire) (SNP)
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10. What recent assessment he has made of the adequacy of cost of living support for households in Wales.