No Deal: Agriculture Tariffs

Debate between Liz Saville Roberts and Jonathan Edwards

Tuesday 16th July 2019 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Will my hon. Friend take this opportunity to invite Ministers not just to the Royal Welsh show next week but to Balla Mart, which will be held on 31 October, when perhaps 800,000 small-body lambs will come to market at a time of considerable pressure on prices?

[Jonathan Edwards]

I welcome my right hon. Friend’s intervention, because it takes me to my next point. If we are locked out of European markets, there is no way in which domestic consumption could pick up the slack. Additionally, the final quarter of the year sees the sale of light lambs from Wales, which are traditionally destined for export. There is no way in which they could be redirected into domestic consumption. Economists previously assumed that the loss of the EU market would depress UK farm-gate prices by 30%.

[Jonathan Edwards]

I am grateful for that valid intervention. Those are the remedial measures that the British Government should be looking at urgently to protect our domestic farm producers. We are all aware of the imbalance there has been in the supply chain over many years, with, as he said, producers under the barrel of the supermarkets. The situation may well be exacerbated by what comes in the following months.

To return to my point, economists believe that farm-gate prices will fall by 30%. With an additional 800,000 lambs on the domestic market at the end of October, farm-gate prices will come under additional pressure. I therefore call on the British Government to commit, on top of the measure mentioned by the hon. Member for Westmorland and Lonsdale (Tim Farron), to additional funds for Wales to be able to implement contingency plans should the worst happen and we find there is unsellable surplus on the domestic market. There would be a disproportionate impact on Welsh agriculture.

In other sectors, the British Government have elected partially or completely to dismantle tariff walls on most products. Tariff rates of 45% for beef, 0% for eggs and 22% for poultry meat will apply for imports into the UK from the EU and the rest of the world, while our exports of those products to the EU will face tariffs of 84%, 19%, and 48% respectively. In the dairy sector, only certain products—such as cheddar with a 7% tariff and butter with a 15% tariff—will be afforded some degree of protection, with the EU applying tariffs of 57% and 48% respectively on those products.

[Liz Saville Roberts]

I am grateful to my hon. Friend for his time. Does he agree with Dairy UK’s analysis that the toxic combination of WTO tariffs on exports aggravated by zero tariffs on imports will cause a massive shock to raw milk prices? That will affect big dairy sector employers such as farmer-owned South Caernarfon Creameries.

Aberystwyth to Carmarthen Railway Reopening

Debate between Liz Saville Roberts and Jonathan Edwards

Wednesday 20th February 2019 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

My hon. Friend mentioned north-south links and talked about HS2. There is actually a north-south rail link on the west coast of Wales, but if someone wants to go by train from Aberystwyth to Porthmadog to Llandudno Junction, a critical part of their journey will be on the delightful but steam-powered Ffestiniog railway.

[Jonathan Edwards]

I am grateful for that intervention by my party’s parliamentary leader. I have long had an ambition to go on that rail line, but that shows the lack of serious investment in Welsh rail infrastructure over the years.

--- Later in debate ---

[Jonathan Edwards]

My hon. Friend is right, and I congratulate him on his work since he was elected as the Member of Parliament for Ceredigion in pushing forward this whole project. He is absolutely right, and that is one of the benefits that I will mention later, because for health and other public services, having a spine rail line linking the two largest towns in the west of our country will be hugely beneficial.

Unless the British Government can be unhooked from their obsession with high finance and London, the structural imbalances of the British state economy of low productivity, low wages, and high personal debt will continue unabated—indeed they will get worse. The economist Grace Blakeley writes forcefully in the New Statesman this week about the need for an economic green new deal. The Carmarthen to Aberystwyth line fits into that sort of stimulus to a T. It is not just about the rail line itself, but how it would act as a literal economic spine. It would provide a much-needed north-south economic focus, which is a far more natural focus for those of us living in the west of Wales, as opposed to the obsession with east-west links. The communities are ideal for any economic strategy based on environmental investment because of our abundance of natural resources.

Too often, the missing link is physical connectivity. The line would open up significant opportunities for bulk freight movement, linking the western ports of Holyhead, Fishguard and Pembroke Dock with the southern ports of Swansea, Cardiff and Newport. If the west of my country was linked from top to bottom, it would link three universities—Bangor, Aberystwyth and the University of Wales’s campuses in Lampeter, Carmarthen and now in Swansea. The line would promote greater collaboration between two university health boards, as my hon. Friend the Member for Ceredigion (Ben Lake) said, and a range of other public services. It would make the hospital in Aberystwyth far more viable. We have a threat at the moment of services being restructured in the west of Wales.

Aberystwyth and Carmarthen are two of the largest towns in the west of my country, yet anyone who wishes to make that journey by train today would face an average journey time of seven hours and five minutes. The fastest possible route is five hours and 52 minutes. The old rail line closed to freight in 1973. Since 2000, calls to reopen the line have intensified. I pay tribute to the dedicated work of the campaign group, Traws Link Cymru. We were lucky enough to meet it a few weeks ago in the office of my hon. Friend the Member for Ceredigion, and it has done incredible work in developing the case. Its proposed route would use much of the existing line, with a new section from Alltwalis to Carmarthen, in the constituency of my friend, the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart). Stations along the route would include Pencader or Llandysul and Llanybydder in my constituency, and Lampeter, Tregaron and Llanilar in the constituency of my hon. Friend the Member for Ceredigion. The expected journey would be one hour thirty minutes, compared with the more than two hours 20 minutes that the bus service takes. Despite the slow march of the bus route, it provides a service for more than a quarter of a million people per annum. The link would have a huge impact on Welsh connectivity, providing for a figure-of-eight system for Wales and reducing the rail journey between Aberystwyth and the capital city of Cardiff by more than two hours.

Opponents of the project will throw back the cost-benefit analysis. However, more than 55,000 people live on the proposed route, compared with the 50,000 who live on the Aberystwyth to Shrewsbury line. The mid Wales line thankfully survived Beeching’s axe, and its passenger numbers are increasing, providing a vital link between Welshpool, Newtown, Machynlleth and Aberystwyth.

As a result of the Budget deal between Plaid Cymru and the Welsh Labour Government, Mott MacDonald was commissioned to undertake a feasibility study on the project. It calculated that if the rail line was up and running by 2024, it would generate 370,000 trips. That would rise to 425,000 by 2027 and 489,000 by 2037. Public appetite for rail is growing and the Minister will be more than familiar with the incredible success of the Scottish Borders line since it was reopened.

In the case of Carmarthen to Aberystwyth and the link to journeys further north, we are talking about, in the words of “Lonely Planet”,

“one of the most beautiful countries in the world”.

What better way to appreciate the splendour of Wales than on a pan-nation rail journey, especially considering that 85% of all visitors into the catchment area of the rail line are day tourists. The hon. Member for Carmarthen West and South Pembrokeshire made that point eloquently.

The report puts the approximate cost at £775 million. For the British Government, that is not a lot of money, and they have shown they can find the money when they need to, whether that is £1 billion to bribe 10 MPs from across the Irish sea or £5 billion to prop up this place for privileged politicians. The cost of refurbishing this place will go up considerably, I have no doubt. The report calculates that the project would create 2,584 gross jobs along the line, with only 144 of them directly attributable to the railway. It calculates that £170.1 million per annum will be created in gross GVA. I am confident that those figures could be magnified if a proper detailed economic strategy was put in place to increase the impact of the line.

[Liz Saville Roberts]

I thank my hon. Friend for mentioning the old line between Afon Wen and Bangor. We talk about advantages for south-west Wales, but moving ahead with that line would replicate those same advantages in north-west Wales, which has just as much need of them and just as much need of improved transport links.

[Jonathan Edwards]

I fully agree with my hon. Friend. Wylfa Newydd, which is now viewed as a white elephant and is in grave danger, was seen as the saviour of the economy of the north of our country. The reality is that we need a major project in Wales; we need a major project in the west of our country.

Leaving the EU: Upland Farming

Debate between Liz Saville Roberts and Jonathan Edwards

Tuesday 26th June 2018 Westminster Hall

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

I beg to move,

That this House has considered the future of upland farming after the UK leaves the EU.

Dioch yn fawr iawn, Mr Pritchard. It is a pleasure to serve under your chairmanship and to lead this debate. I thank both the farming unions in Wales, NFU Cymru and the Farmers’ Union of Wales, for their help in preparing for this debate and for their overall contribution to supporting the farming industry in Wales and the wider rural economy.

Wales does not have a national animal in the way that New Zealand has the kiwi, Australia the kangaroo, Argentina the puma and South Africa the springbok. We have the splendid mythical Welsh dragon, of course, but if we were to have a living animal, a very strong case could be made for the sheep, or perhaps the ram. There are more than 10 million sheep in Wales, based on the latest annual survey, accounting for 33% of all UK sheep. That compares with human population of around 3 million, accounting for only 5% of the UK population.

The reason for the huge number of sheep livestock in Wales is the terrain and climate of my country. Wales is very mountainous and, as we know, even more wet. Some 82% of Welsh land is utilised for agricultural —purposes—an incredible figure when considering Welsh terrain—and 10% of UK agricultural land is in Wales. Agriculture contributes 400% more to direct employment in Wales than it does in the UK on average, if my reading of the British Government’s Brexit economic impact assessments is correct. With those statistics in mind, Welsh politicians should be extremely concerned about the likely impact of Brexit on this vital indigenous Welsh industry. We have far more to lose from a botched Brexit than other parts of the British state do.

The vast majority of farming land in Wales is designated a less favoured area. It is more suited to pasture than to arable farming. As a consequence, the Welsh farming model tends to be the traditional family farm based on livestock, rather than the crop-based farming that we tend to see in England.

In the late winter of 2010, before I was elected, I visited Mr Ian Rickman and his family at their Gurnos farm to undertake some work experience. Gurnos is high above the village of Bethlehem in the Tywi valley, near the Garn Goch. The Garn is one of the largest iron-age forts on the Brecon Beacons mountain range. It houses the monument to the late Gwynfor Evans, a national great, and the first Plaid Cymru MP elected to Westminster. He used to walk its slopes to gain solace and inspiration.

When I did my work experience, it was bitterly cold. The reality is that the only productive use of land at such altitudes is for sheep farming. During that experience, I gained a huge amount of respect for the sheep as an animal, but also for the families who endeavour to make a living out of hill farming. I assure you, Mr Pritchard, that there are far easier ways to make money and sustain a family. Let us remember that according to Welsh Government statistics, the average farm income in Wales is less than £30,000 a year.

These people, however, are from the land. Their families have worked the hills for generations upon generations, and have sustained a community, a culture, a language and a way of living that has lasted thousands of years. They have cultivated a natural landscape so beautiful that in 2017 “Lonely Planet” designated the north of my country one of the essential places to visit in the world. As beautiful as the north is, I would of course say that Carmarthenshire is best, but the critical point I am endeavouring to make is that the beauty of our country, and everything that goes with it, is not just something that happens naturally. It is the result of the work of the agricultural community and its livestock. Without that, Wales would not be the special place that it is; nor would it have the impact that it has, economically and socially.

Had I more time, I would have elaborated on the economic and cultural importance of agriculture, and its benefits for tourism, other sectors of the Welsh economy, and the Welsh language. My good friend Councillor Cefin Campbell, who leads for the executive board of Carmarthenshire County Council on rural development, has identified working with the agricultural community and young farmers’ clubs as a key cog in his strategy for regenerating the economy and preserving the language in Wales.

I realise that other Members want to speak, and I am grateful for the support I received before the debate from those Members, so I will move on. Farmers are a tough bunch, used to operating in a climate of fluctuating incomes and rapid market changes for their produce. European agricultural support has been the one constant in keeping their businesses sustainable. The European market is by far the biggest external market for Welsh agricultural produce, especially lamb. I have to say to the Minister that there is a huge amount of anxiety and foreboding about the future. I have held many meetings with farmers and unions since the Brexit vote, and anxiety is increasing as we move on. If this debate achieves only one thing, I hope it is that we can collectively begin to reduce those anxieties in the agricultural community.

We have to concentrate on three main areas that are vital for the future of hill farming: devolution, agricultural support, and trade. If it is the ultimate decision of the British Government to leave key European frameworks such as the single market, new frameworks of the territories of the British state will have to be created in their place to govern internal trade. I am not opposed to the creation of such frameworks, if the British Government do decide to shoot the economy in the foot by leaving the single market. Following Welsh independence, I would want the Welsh economy to be within a larger trading bloc; cross-border economic co-operation is a very good thing.

The key divide between Plaid Cymru and our Unionist opponents is that we believe that any common framework should be built and regulated by the four Governments of the state in co-operation—in a partnership of equals. Any decisions should be made on a shared governance basis, by a properly constituted UK council of Ministers, with a robust decision-making and dispute resolution process. They, on the other hand, believe that these matters should be decided in Westminster, and Westminster alone. That risks Wales becoming a permanent rule taker—or, as the Foreign Secretary might say, a vassal country within the British state. That risks English-specific frameworks being imposed on Wales, to the detriment of hill farmers in my country.

Admittedly, our position in Wales has not been strengthened by the contemptible capitulation of our country’s Labour Government, who accepted the changes. As Professor Tim Lang said recently in an evidence session of the External Affairs Committee of the National Assembly, when it comes to Brexit, Welsh interests are now “steamrollable”. As I said during a ministerial statement last week, the actions of the Welsh Government will go down as one of the biggest sell-outs in Welsh political history, and I can assure you, Mr Pritchard, that that is quite some achievement.

The 26 policy powers re-reserved by Westminster include vital agriculture-related policy areas such as agricultural support, fertiliser regulation, genetically modified organism cultivation, organic farming, zootech, animal health, animal welfare, food and feed safety, food labelling, public procurement, nutrition labelling, plant health and food geographical indicators. Welsh lamb holds EU-protected geographical indication status, of course, as does Welsh beef.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I thank my hon. Friend—diolch yn fawr iawn. Would he agree that it is time for the red meat levy—on animals that were reared in Wales but slaughtered in England—to come back to Wales, so that Hybu Cig Cymru can do an effective job on marketing that meat?

Autumn Budget as it Relates to Wales (Morning sitting)

Debate between Liz Saville Roberts and Jonathan Edwards

Wednesday 7th February 2018 General Committees

[Jonathan Edwards]

Mae’r Bonheddwr anrhydeddus yn gwneud pwynt cywir iawn a byddaf yn dychwelyd i’r pwyntiau hynny yn hwyrach yn fy araith.

(Translation) The hon. Gentleman makes a very valid point, and I will return to the issues he raises.

[Liz Saville Roberts]

A fyddai fy Nghyfaill anrhydeddus yn cydymdeimlo gyda ffermwyr fyddai’n disgwyl gyda’r bunt wan y byddai defaid o faint bach yn gwerthu’n dda ar y cyfandir? Nid dyma’r neges a glywaf gan fy ffermwyr i ym Meirionydd.

(Translation) Does my hon. Friend sympathise with farmers who would expect smaller sheep to sell well on the continent, even though that is not the message that I am hearing from farmers in Meirionnydd?

[Jonathan Edwards]

Mae hynny’n wir. Roeddwn yn darllen rhywbeth ddoe bod disgwyl y bydd pris defaid, yn enwedig, a chig yn syrthio’n ddifrifol os mae Cymru’n ffeindio’i hunan y tu allan i’r undeb tollau. Mae’r peryglon ar gyfer y sector amaethyddol, sydd yn ein gwynebu yn y dyfodol agos, yn beryglus iawn. Mae ein arweinydd seneddol yn codi pwynt dilys iawn.

(Translation) That certainly is the case. I was reading something yesterday that said that the price of sheep, and of meats in general, is expected to fall significantly if Wales finds itself outside the customs union. The risks for the agricultural sector in the very near future are huge. Our parliamentary leader raises a very valid point.

--- Later in debate ---

[Jonathan Edwards]

Mae’r Bonheddwr anrhydeddus yn codi pwynt dilys. Ces i ddim y cyfle i wneud y pwynt yma yn ystod y ddadl, ond yn bersonnol byddwn i wedi moyn symud y Senedd allan o Lundain. Rydw i’n credu byddai hynny wedi bod yn symbol o’r angen i ddatganoli’n economaidd y Wladwriaeth Brydeinig. O ystyried bod y penderfyniad bellach wedi cael ei wneud—rwy’n llongyfarch y Bonheddwr anrhydeddus ar ennill ar ei welliant—dylem nawr fanteisio ar y cyfle i sicrhau bod y buddsoddiad hynny yn cael ei wasgaru ledled y Wladwriaeth Brydeinig. Rwy’n credu bod yna job wirioneddol i’w wneud ar hynny, ac rwy’n edrych i’r Bonheddwr anrhydeddus i gynnig arweiniad, o ystyried mai fe sydd wedi arwain y ddadl i aros fan hyn—dyna job fach iddo fe dros y blynyddoedd nesaf.

(Translation) The hon. Gentleman raises a valid point. I did not have the opportunity to make this point during the debate, but I wanted to move Parliament away from London, because that would be a symbol of the need to devolve the British states economically, too. Given that a decision has been made—I congratulate him on getting his amendment to that motion through—we should take every opportunity to ensure that that investment is spread across Britain. There is a real job to be done there, and I look to him to give leadership on that over the next few months, given that he has led the debate for remaining here.

[Liz Saville Roberts]

Ar destun yr ardoll brentisiaethau, onid yw’n amser i ni gael mwy o eglurdeb ynglyn â chwmnïau gyda’u prif swyddfeydd tu allan i Gymru a gyda gweithwyr o Gymru, a’r arian sydd yn cael ei drosglwyddo o’r Trysorlys fan hyn i Gaerdydd? Yn enwedig, mae’r ardoll o 0.5% yn cael ei chodi ar gyflogres pedwar Heddlu Cymru, ond nid yw hynny o ddewis Llywodraeth Cymru ac nid ydyw’n cael ei rhoi tuag at hyfforddiant yr heddlu.

(Translation) On apprenticeships, is it not time for us to get greater clarity on businesses that are headquartered outside Wales but have workers from Wales, with respect to the money that is transferred from the Treasury to Cardiff? In particular, the levy is raised on the four police forces of Wales, which can apply to their wage packets, but it does not come under the responsibility of the Welsh Government and it does not reach the police’s training budgets.

[Jonathan Edwards]

Mae hynny’n bwynt hollol deg o ran prentisiaethau plismona. Yn sicr, bydd Aelodau ein plaid ni yn ei godi yn y ddadl ar Lawr y Tŷ prynhawn yma. Y cwestiwn sylfaenol yw: pam y dylid gwario arian trethdalwyr Cymru ar brosiectau yn Lloegr tra bod Llywodraeth Prydain yn gwrthod buddsoddi mewn prosiectau Cymreig ac mewn gwirionedd yn torri addewidion megis trydaneiddio’r rheilffordd i Abertawe? Rydym ni wedi clywed lot yn barod am y pwnc hynny yn ystod y ddadl.

Os yw Llywodraeth Prydain eisiau codi cynhyrchedd mewn ardaloedd daearyddol sydd yn perfformio’n wael, rhaid iddynt ailgyfeirio buddsoddiad i’r ardaloedd hynny yn hytrach na lluchio popeth at Lundain. Mae pawb bellach yn cytuno bod buddsoddiad estynedig, tymor hir mewn seilwaith yn un o ragofynion llwyddiant economaidd. Os edrychwn ar fuddsoddiad o’r fath dros y degawdau aeth heibio, yr hyn a welwn yw cyfran anghymesur o fuddsoddiad o’r fath yn mynd i Lundain a de-ddwyrain Lloegr. Gallwn edrych ar HS1, lein y Jiwbilî, lein Victoria, Crossrail 1, Crossrail 2, yr M25 a HS2. Ni fu buddsoddiad cyffelyb yn unrhyw wlad na rhanbarth arall o’r Deyrnas Gyfunol. Pam? Oherwydd nifer o ffactorau, gan gynnwys agwedd Lundain-ganolog y pleidiau Unoliaethol. Gall hefyd fod oherwydd y modelau economaidd a ddefnyddir wrth werthuso buddsoddiadau o’r fath.

O ystyried y swyddi sydd wedi eu canoli yn Llundain, mae’r elw tymor byr ar bob punt a fuddsoddir mewn seilwaith yn debygol o fod yn uwch yno na mewn rhannau eraill o’r wladwriaeth Brydeinig. Mae hyn yn ei dro yn arwain at sbiral lle mae symiau cynyddol o fuddsoddiad trafnidiaeth yn mynd i Lundain, ac yn eu tro mae’r rhanbarthau tlotaf yn mynd a’r sbiral tuag at i lawr. Mae yma wers inni yng nghyd-destun Cymru. Fel dywedodd fy Nghyfaill anrhydeddus dros Geredigion, mae’r buddsoddiad gan Lywodraeth Cymru wedi’i anelu’n fwyfwy at Gaerdydd a’r de-ddwyrain yn hytrach na chael ei wasgaru ar draws ein gwlad.

Yn 2015-16, yr oedd gwariant cyhoeddus ar drafnidiaeth yn £973 y pen yn Llundain o gymharu â £444 yng Nghymru. Petai lefel y gwariant yng Nghymru yr un fath ag yn Llundain, buasem yn derbyn £1.6 biliwn yn ychwanegol y flwyddyn i’w fuddsoddi. Mae’r anghydraddoldebau cyfoeth mor ddifrifol yn y wladwriaeth Brydeinig fel y dylid anfon swyddogion y Trysorlys i’r Almaen i ddysgu gan yr Almaenwyr sut y gwnaethant ymdrin ag anghydraddoldebau cyfoeth daearyddol yn dilyn cwymp wal Berlin.

(Translation) That is an entirely fair point. Members of our party will return to that point on apprenticeships in policing in this afternoon’s debate on the Floor of the House. The fundamental question we must ask is why Welsh taxpayers’ money should be spent on English projects while the British Government refuse to invest in Welsh projects, and renege on promises such as the electrification of the main line to Swansea. We have heard much about that already. If the British Government want to raise productivity in low-performing areas, they must redirect investment into those areas, rather than throwing everything at London.

It is widely agreed that sustained long-term investment in infrastructure is a prerequisite of economic success. In recent decades, a disproportionate amount of that investment has been made in London and the south-east of England, such as that on HS1, the Jubilee line, the Victoria line, Crossrail 1, Crossrail 2, the M25 and HS2. There has been no comparable investment in any other country or region of the UK. Why? It is due to a number of factors, including the Unionist parties’ London-centric approach. It may also be because of the economic models employed in evaluating such investments.

Given the concentration of employment in London, the short-term return on every pound invested in infrastructure is likely to be higher there than in other parts of the UK. That, in turn, leads to a spiral, in which ever-increasing amounts of investment in transport go to London, and the poorest regions spiral downwards. I believe there is a lesson there for us about the Welsh context. My hon. Friend the Member for Ceredigion made the point that Welsh Government investment is targeted more and more at Cardiff and the south-east, rather than being spread across the nation.

In 2015-16, identifiable public expenditure per capita was £973 in London, compared with £444 in Wales. If the level of spending in Wales were the same as it is in London, we would receive an extra £1.6 billion per annum for investment. The wealth inequalities are so important that Treasury officials should be sent to Germany to learn how it went about addressing the geographical wealth inequalities following the fall of the Berlin wall.

Essentially, Germany made a strategic decision to deal with the wealth inequalities in the reunified Germany, which was based on operating aids and tax incentives for the poorer regions, and the deliberate redirection of foreign direct investment into the poorer parts of the state.

Yn niffyg hynny, rhowch inni yng Nghymru yr arfau i fwrw ymlaen â’r dasg o adeiladu ein gwlad ein hunain, oherwydd dengys hanes nad yw aros am Lywodraethau San Steffan—o ba bynnag liw—i gyflawni pethau ar gyfer Cymru yn debyg o ddelio â’n problemau. Mae Cymru wedi dioddef nid yn unig o ddiffyg sylw a buddsoddiad gan Lywodraeth y Deyrnas Gyfunol ond o flerwch llawer Llywodraeth Lafur yng Nghymru a’u hanallu i gyflawni. Mae eu hymdrech ddiweddaraf i greu strategaeth economaidd yn rhyfeddol am ei bod heb unrhyw ddangosyddion perfformiad allweddol i fod yn ganllaw i’r sawl sydd i fod i weithredu’r strategaeth ac i alluogi’r gweddill ohonom i fesur pa mor llwyddiannus yw’r strategaeth.

Roedd y Gyllideb yn wan iawn. Ystyriwn y gwyliau treth stamp. Dywedodd Pwyllgor Dethol y Trysorlys, Swyddfa Cyfrifoldeb y Gyllideb a’r Sefydliad Astudiaethau Cyllid y bydd polisi’r Llywodraeth o roi gwyliau treth stamp, y buont mor uchel eu cloch yn ei gylch, yn gwthio prisiau tai i fyny o ryw 0.3%, gyda’r rhan fwyaf o’r cynnydd yn digwydd eleni. Yn y Gyllideb, neilltuwyd £3 biliwn yn ychwanegol i gynllunio am Brexit. Felly yn hytrach na £350 miliwn yr wythnos i’r gwasanaeth iechyd, yr ydym yn gwario yn agos i £58 miliwn yr wythnos ar fiwrocratiaid y wladwriaeth Brydeinig—ac nid ydynt hwy, hyd yn oed, fel petaent yn rhoi’r atebion mae’r Llywodraeth eisiau eu clywed i’r cwestiynau nad oeddent eisiau eu gofyn.

Er iddynt gynnig rhyw godiad pitw o £2.8 biliwn i’r gwasanaeth iechyd yn Lloegr dros y tair blynedd nesaf, mae hyn yn edrych fel rhywbeth rhy fach yn rhy hwyr, gan ystyried y storïau yn y wasg dros y misoedd diwethaf. Yng nghanol argyfwng y gaeaf, gwelwn effeithiau tan gyllido cronig yn y gwasanaeth iechyd yn Lloegr. Mae’n amlwg na allwn ymddiried yn y Ceidwadwyr i ofalu am y gwasanaeth iechyd yn Lloegr. Fodd bynnag, dyw record Llafur yng Nghymru ddim llawer gwell. Fel gyda’r rhan fwyaf o bethau, maent yn siarad digon o eiriau teg yn San Steffan, ond lle maent mewn grym, mae’r stori yn wahanol iawn.

Mae’r newidiadau i’r credyd cynhwysol—universal credit—a chynlluniau i wneud i ffwrdd â’r cyfnod cychwynnol o saith diwrnod i hawlwyr pan na fuasent wedi bod yn gymwys i gael budd-daliadau, a lleihau’r cyfnod aros presennol o chwech wythnos i’r rhan fwyaf o hawlwyr i bump wythnos, i’w groesawu. Ond mae hyn yn gyfystyr, mewn gwirionedd, a rhoi plaster ar goes sydd wedi torri. Mae’r ffordd ddi-drefn y cyflwynodd y Llywodraeth y credyd cynhwysol, a’r modd y gweinyddir cynlluniau lles yn ehangach, yn gywilyddus. Mae ymwneud â chwmnïau preifat mewn lles yn anfoesol ac yn anghyfrifol. Ni ddylai cwmnïau fel Capita elwa o drueni pobl eraill. Rydym yn croesawu’r dreth ar werthiannau a gynhyrchir yn y Deyrnas Gyfunol a fydd yn effeithio ar fusnesau digidol mawr fel Apple a Google. Ond unwaith eto, fodd bynnag, gwyddom fod y Torïaid yn gwrthwynebu llawer o newid yn strwythur ein sustem dreth, sydd ar hyn o bryd â thyllau dianc sy’n caniatáu osgoi gwerth £13 biliwn mewn trethi, a pheidio â thalu mwy fyth. Doedd dim ymrwymiad penodol i gynyddu cyflogau gweithwyr y sector cyhoeddus, y rhewyd eu cyflogau—ac a gapiwyd wedyn ar 1%—ers 2010. Diolch i chwyddiant, mae hyn yn golygu fod cyflogau nyrsys wedi eu torri mewn gwirionedd o 14%. Mae Cymru yn dal i dderbyn llai y pen na Llundain. Yn anffodus, mae’r blaid Lafur yn methu gwneud yn iawn am y cam yng Nghymru, er fod ganddynt y pwerau i wneud hyn, fel mae’r Llywodraeth SNP wedi llwyddo i wneud yn yr Alban.

Mae Cymru’n dal yn derbyn llai y pen na Llundain. Yma mae rhai o gymunedau tlotaf Ewrop ac mae toriadau enfawr mewn cyllid o ganlyniad i Brexit. Mae’n her sylweddol i sectorau allweddol ein economi. Ac eto, mae’r Canghellor yn dewis defnyddio ystadegau fyddai’n fwy addas i un o fysiau mawr coch yr Ysgrifennydd Tramor i honni y bydd cynnydd o £1.2 biliwn yng nghyllid cyhoeddus Cymru o Gyllideb yr hydref. Roedd yn ddiddorol iawn yn ystod cyflwyniad yr Ysgrifennydd Gwladol: wnaeth e ddim defnyddio’r ffigwr hynny yn benodol yn ei araith, gan ei fod yn gwybod, fel dywedodd arweinydd Aelodau Seneddol Cymreig y blaid Lafur yma heddiw, bod dros hanner yr arian hwnnw yn fenthyciadau—neu fiscal transactions—y bydd yn rhaid i Lywodraeth Cymru dalu yn ôl.

Doedd dim sôn am drydaneiddio’r rheilfyrdd, sydd wedi ei ganslo er yr addewid a roddwyd; dim sôn am y morlyn llanw ym Mae Abertawe, a dim golwg ohono yn y Gyllideb; a chyllid i wasanaethau datganoledig rhyw £750 miliwn yn is nag ar ddechrau’r ddegawd. Dyna record y Llywodraeth Brydeinig pan mae’n dod at Gymru. Mae stori’r Gyllideb hon yn hollol glir: nid yw San Steffan yn becso am Gymru.

(Translation) Failing that, give us in Wales the tools to move ahead with the job of building our own country. History demonstrates that waiting for Westminster Governments of whatever colour to deliver for Wales is unlikely to address our problems. Wales has suffered not only from the UK Government’s lack of attention and investment, but from successive Labour Governments’ ineptitude in Wales and their inability to deliver. The latest effort to create an economic strategy is remarkable in that the strategy is without any measurable key performance indicators to guide those who are to implement it and enable the rest of us to gauge how successful its implementation is.

Let me turn to some specific aspects of the Budget, which was very weak. The Treasury Committee, the Office for Budget Responsibility and the Institute for Fiscal Studies stated that the Government’s policy of a stamp duty holiday, which they were so vocal about, will push house prices up by 0.3%, and that most of the increase will come through this year. The Budget provided £3 billion to plan for Brexit. Rather than the £350 million for the health service that we were promised, we are spending almost £58 million per week on bureaucracy in the British state. The bureaucrats are not even providing the answers that the Government want to hear.

The minute increase of £2.8 billion for the NHS in Wales is too little, too late, given the stories in the press in the past few months. The winter crisis has shown the impact of the chronic underfunding of the NHS in England. It is clear that we cannot trust the Conservatives to take care of the NHS in England. However, Labour’s record in Wales is not much better. Labour Members speak warm words in Westminster, but when they are in power the story is very different indeed.

The changes to universal credit, including the plan to do away with the initial period of seven days in which claimants cannot receive payments and the reduction of the waiting time from six weeks to five weeks for most claimants, are to be welcomed, but they amount to putting a plaster on a broken leg. The chaotic way in which universal credit was introduced and the way that welfare is administered more generally is disgraceful. The involvement of private companies is immoral and irresponsible. Companies such as Capita should not benefit from the misery of others. We welcome the introduction of a tax on sales generated in the UK, which will affect companies such as Apple and Google, but we know that the Tories are opposed to making changes to our tax structure, which contains loopholes that allow for the avoidance of £13 billion of taxation.

The Budget contained no specific commitment to increase public sector pay, which has been frozen and capped at 1% since 2010. Thanks to inflation, that means that nurses have had a real-terms cut to their salaries of 14%. The Labour party, unfortunately, has not put that right in Wales, as the Scottish National party Government managed to do in Scotland, despite having the power to do so.

Wales still gets less per capita than London. It has some of the poorest communities in Europe, and there are huge cuts to budgets as a result of Brexit, and significant challenges to crucial sectors of our economy. Yet the Chancellor chooses to use statistics that would be more appropriate for one of the Foreign Secretary’s red buses, to claim an increase of £1.2 billion in the Welsh budget emerging from the autumn Budget. It was interesting that the Secretary of State did not use that figure during his opening remarks, because he knows that, as the shadow Secretary of State for Wales said here on behalf of Welsh Labour MPs, more than half of that is fiscal transactions that the Welsh Government will have to repay.

There was no mention of the electrification of rail, which has been cancelled, despite the pledge that was given; there was no talk of the tidal lagoon in Swansea Bay, and no sign of that in the Budget either; and funding for devolved services is lower by some £750 million than it was at the beginning of the decade. That is the record of the British Government with respect to Wales. The story of the Budget is clear: Westminster does not care about Wales.

Wales and Borders Franchise

Debate between Liz Saville Roberts and Jonathan Edwards

Tuesday 7th November 2017 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Does my hon. Friend agree that the previous franchise emphasised punctuality above all else in terms of success, and that for the next franchise to be a success, it must also include customer satisfaction in its criteria?

[Jonathan Edwards]

I am grateful for that intervention. My hon. Friend, who is the parliamentary leader of our party, serves on the Select Committee on Welsh Affairs, which has done very detailed work on this issue and specifically on the initial franchise procurement. The Committee, which consists of members from across the House, was especially damning of how that franchise was constructed.

Let us fast forward to 2015, when the story of this not-so-great train robbery steps up a gear. The then Prime Minister, David Cameron, and his deputy, Nick Clegg, graced Wales with their presence to announce a new devolution deal. As part of the so-called St David’s day agreement, we were told that powers over the procurement of the next rail franchise would be devolved. The cheers at our national stadium, where they made the announcement, were reminiscent of those at a Six Nations match. Finally, we thought, Wales would get the power to create a rail system fit for our people. Sadly, as is often the case, that optimism was misplaced.

In the next section of my speech, I will try to piece together what is a complex picture of confusion, chaos and ineptitude by Governments at both ends of the M4. As is often the case with such matters, each individual element of the story seems unremarkable—inconsequential even. However, in the round, we see an intriguing episode of incompetence, which has already cost millions of pounds and could mean chaos for rail users in Wales.

The story starts just over a year ago, in September 2016. Combing through what was then the Wales Bill—it is now the Wales Act 2017— I spotted what I assumed was an error. Despite the Government’s boy scout promises, devolution of the franchise was not included in the Bill. Being the assiduous and diligent parliamentarian that I am, I decided to flag up that omission to the Secretary of State for Wales. Following the appropriate procedures, I tabled an amendment to the Bill that would devolve the franchise. On 12 September, in a Report Stage debate on the Wales Bill, I sought the Minister’s assurance that the error would be rectified. I said:

“Before I get into my speech, may I say that I will gladly not say a word”—

regarding devolution of the franchise—

“if the Secretary of State or the Minister intervenes to say that they will proceed with that promise and if they outline the legislative vehicle whereby these powers will be devolved to Wales?”

The Secretary of State replied:

“We are negotiating with the Welsh Government over the use of a transfer of functions order under the 2006 Act.”—[Official Report, 12 September 2016; Vol. 614, c. 671.]

The more naive may have thought that that was job done, but as a veteran of many a Wales Bill, I know that devolving powers is not such a simple task, so we continued to push. During the Welsh Affairs Committee inquiry into procurement of the next Wales and Borders franchise, my hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts) repeatedly asked how the Welsh rail responsibilities would be devolved. Every time she asked the question, whether to a UK or Welsh Government representative, she met with the same complacent response, “It’s just a technical thing; it will all get sorted,” yet everything seemed not to add up. Why wait to devolve the franchise if we could already do so? Why risk waiting? Why circumvent parliamentary scrutiny? Why be so complacent about the powers required for a multibillion-pound contract? Was the reason ignorance, incompetence or something more sinister?

Thanks to my hon. Friend’s excellent work, people will find on page 13 of the report two recommendations calling on the UK and Welsh Governments to update the Committee on the progress of the talks on the transfer of functions and to ensure that there is effective scrutiny of the transfer of functions and the way in which the Governments have agreed to devolve the powers. Of course, neither of those recommendations has been followed.

On 13 October 2016, despite still not having any powers actually to procure the franchise, the Welsh Government announced four shortlisted operators for it: KeolisAmey, a joint venture between French transport giant Keolis and public service provider Amey; MTR Corporation, which has interests globally from Australia to Sweden and is based in Hong Kong; Abellio Group, which operates bus and rail networks across Europe and is the international arm of the Dutch national rail operator; and the existing German state-owned operator Arriva. Those were the only four to enter a bid to run the next franchise.

According to the original plan, the four bids would be assessed by Transport for Wales, a Welsh Government-owned company. Through a process of “competitive dialogue”, the four bidders would work to create one of the most ambitious franchises ever, with the south Wales metro and the rest of the Welsh network covered by a single operator.