Oral Answers to Questions

Mims Davies Excerpts

Wednesday 24th October 2018 Commons Chamber

[Ian C. Lucas (Wrexham) (Lab)]

2. What representations he has received from the aerospace sector in Wales on the priorities for that sector when negotiating the terms of the UK’s exit from the EU.

[The Parliamentary Under-Secretary of State for Wales (Mims Davies)]

The UK, and specifically Wales, is home to a world-class aerospace industry. I have regular meetings with the aerospace sector and met Airbus last month in north Wales as part of my engagement with the CBI. It is a top priority to continue to create and maintain the right conditions post Brexit for this growing international sector to thrive.

[Ian C. Lucas]

First, I welcome the Minister to her post. In June, Airbus said that a no-deal Brexit would severely undermine

“UK efforts to keep a competitive and innovative aerospace industry.”

It concluded that it would be “catastrophic” to have a UK Brexit. Does the Minister agree?

[Mims Davies]

As I have said, the aerospace sector in north Wales is absolutely vital. Airbus has been making those statements through conversations with those involved with the north Wales growth deal. I know, having met the hon. Gentleman last week, that a thriving sector, and the skills associated with it, are absolutely vital. The F-35 avionics global repair hub shows that this is a sector in which we are world-leading, and the UK Government in Wales will continue to support it.

[Mr David Jones (Clwyd West) (Con)]

My hon. Friend is quite right to mention the importance of the proposed north Wales growth deal to the aerospace industry in north Wales. Can she say when the Government are likely to make a substantive announcement about that deal?

[Mims Davies]

I thank my right hon. Friend for his long-standing commitment to the north Wales growth deal, and for pushing for action and progress in this area. There are some very positive movements, and we hope to make real progress. We need a further update from the Welsh Government, and there will be key meetings later this week.

[Jessica Morden (Newport East) (Lab)]

Airbus employs many of my constituents in Newport and Filton. Close collaboration between the Civil Aviation Authority and the European Aviation Safety Agency is vital to this industry. What are the Government doing to safeguard that?

[Mims Davies]

The hon. Lady is absolutely right to highlight the jobs and opportunities around the avionics sector in Wales. We are aware of the benefits of collaboration, and seek that as part of the overall deal. It is something that Switzerland—a non-EU member—enjoys, and we will continue to look for it as part of our overall deal.

[Antoinette Sandbach (Eddisbury) (Con)]

Airbus employs a number of constituents in Eddisbury. Can the Minister confirm the Government’s commitment to striking a deal that provides for frictionless trade in this sector?

[Mims Davies]

I thank my hon. Friend for highlighting how important this sector is in her constituency. As an assiduous constituency Member, she raises the challenges ahead, but a good deal that works to support jobs in the supply chain is absolutely the primary focus of discussions, and a pragmatic, frictionless deal is what the Government are working for.

[Christina Rees (Neath) (Lab/Co-op)]

With your indulgence, Mr Speaker, may I congratulate Louise Magee, general secretary of Welsh Labour, and her partner Luke Holland, who have had a beautiful baby girl, Catherine Ivy, who is to be known as Kitty? Mother and baby are doing fine, and Luke is coping well, I understand.

I welcome the Minister to her place. The Welsh Government have pledged £3 million to support Airbus in preparing for Brexit. ADS, the national trade association that represents aerospace companies, has urged the Chancellor to ensure that there is enough financial liquidity for companies such as Airbus, which rely on just-in-time European supply chains. What are the Minister’s priorities for the Welsh aerospace sector?

[Mims Davies]

I thank the hon. Lady for her question. As I have said in my previous answers, Wales has a deep-rooted, world-leading aerospace sector, and the Government understand that. There has been cross-Government engagement with all key stakeholders to support it. Frictionless trade and supporting the sector are absolutely vital, and we are ready to work and step up to that challenge.

[Christina Rees]

That may well be, but the Government’s Brexit advice paper suggests that companies such as Airbus may move their headquarters to an EU member state in the event of no deal, which would be absolutely catastrophic for our Welsh economy. Does the Minister agree with her Prime Minister that no deal is better than a bad deal, as far as Wales is concerned?

[Mims Davies]

The UK Government in Wales are not complacent about the challenges of all scenarios. They are working extremely hard to make sure that all the opportunities are there in any deal, and are working to make sure that the sector thrives. That is vital to the Secretary of State, and to the UK Government. We will continue to stand by the Prime Minister in getting that frictionless deal.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

3. What representations he has received from the Welsh Government on the design of the UK Shared Prosperity Fund.

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[Ben Lake (Ceredigion) (PC)]

4. What assessment he has made of the implications for public authorities in Wales of the Treasury’s draft valuation directions for non-funded pension schemes.

[The Parliamentary Under-Secretary of State for Wales (Mims Davies)]

The valuations indicate that the amount employers pay towards the schemes will need to increase, and details will be finalised when the valuations are completed early next year. Treasury has committed to support the Welsh Government with additional funding in accordance with the statement of funding policy.

[Ben Lake]

The 2016 actuarial valuations will have an unprecedented impact on the constrained resources of local authorities, teaching institutions, the fire service and police forces in Wales if UK Government funding is not forthcoming. Will the Minister confirm that this funding will be forthcoming from the Treasury to the Welsh Government?

[Mims Davies]

The hon. Gentleman raises this concern on behalf of his constituents, and it is correct that some increases in costs were predicted in the 2016 Budget. We will of course apply the principles set out in the statement of funding policy in determining any additional funding for the devolved Administration, and continue to do what is right for Wales.

[Eddie Hughes (Walsall North) (Con)]

On the Minister’s first outing at the Dispatch Box, will she join me in welcoming the additional funding given to the Welsh Government to fund teachers’ pay rises in Wales?

[Nick Smith (Blaenau Gwent) (Lab)]

What is the Minister going to do to protect police numbers, given these financial pressures?

[Mims Davies]

The hon. Gentleman will know that we have tackled the fiscal challenge that Wales has suffered with for decades. In fact, Wales now benefits from £120 for every £100 spent in England. As I said earlier, we will do what is right for Wales, as we have done in the case of teachers raised by my hon. Friend the Member for Walsall North (Eddie Hughes).

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

5. What discussions he has had with the Secretary of State for International Trade on increasing (a) exports from and (b) foreign direct investment into Wales.

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[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

11. What recent discussions he has had with Cabinet colleagues on the effect on people in Wales of the UK Government’s recent changes to welfare benefits.

[The Parliamentary Under-Secretary of State for Wales (Mims Davies)]

Our welfare reforms are incentivising work and supporting working families. The employment rate in Wales is at a record high, and the unemployment rate is at a record low. We will continue to take a test and learn approach, acting on feedback and improving the system as it rolls out.

[Ms Rimmer]

Why are this Government determined to press ahead with managed migration against the advice of more than 80 disability organisations, the Resolution Foundation and the National Audit Office that they should not do so until the major flaws in the universal credit system are sorted so that it can cope with the higher claimant volumes?

[Mims Davies]

I thank the hon. Lady for her question, but I dispute its premise. This is a personal, focused benefit, which offers us an opportunity to help people with health conditions, provide tailored support from work coaches, assist with housing costs, and give advances. We are listening and responding during the roll-out. This is a huge change in a complicated system, and we are testing and learning, but above all we are helping people.

[Gerald Jones]

Universal credit is a shambles. In my constituency, a homeless gentleman was told that phone claims for universal credit were not allowed, and that claims must be online only, although he has no access to IT or a computer. Vulnerability was not considered, and, ironically, the man was even offered a home visit. Will the Minister urge DWP colleagues to reconsider the online system and reintroduce phone claims?

[Mims Davies]

There is an opportunity to make phone claims. I would be happy to hear about that constituency case, although it is very concerning. This benefit is about ensuring that people are better off in work, and are able to respond in particular circumstances. In the Cwmbran jobcentre, positives are being fed back in terms of adjustments and simplification on the ground. If that is not happening in this gentleman’s case, will the hon. Gentleman please let me know?

[Rachel Maclean (Redditch) (Con)]

Does my hon. Friend agree that it is a shame that Labour Members fail to recognise the transformative effect of universal credit in lifting people out of poverty and getting them back into work? That is in stark contrast to Labour’s approach, which left people trapped on benefits for decades or more.

[Mims Davies]

My hon. Friend is exactly right about the myriad complex reasons for which people may struggle to get back into work. The reason may involve personal circumstances, it may involve long-term legacy benefits, it may involve skills, or, indeed, it may involve confidence. With this project of universal credit, if we continue to scare people off approaching jobcentres and making use of advice—budgeting advice, and the advice of work coaches—then we will not be listening and learning from the people whom the Labour party has left to fester on legacy benefits, and that will not help anyone.

[Robert Courts (Witney) (Con)]

rose—

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[Robert Courts]

Thank you very much, Mr Speaker. I, too, welcome the Minister to her post. Does she agree that the Government’s welfare reforms show that people are better off in work, and that it is the best route out of poverty?

[Mims Davies]

I absolutely agree. From Witney to Torbay, people are getting into work more quickly, staying in work longer and progressing in work, which is very important. We are listening and learning. This is a huge change, but we do not need to row back. Claimants are getting into work and staying in work, and, as we know from the Prime Minister, the route out of poverty is having a job.

The Prime Minister was asked—