Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 21st January 2015 Commons Chamber

[Stephen Crabb]

I thank my hon. Friend for that question and make two points in response. First, First Milk did not collapse last week. It faces some pressures and there are specific impacts for dairy herds, but that co-operative is still very much functioning. Secondly, on the Welsh Government, we work constructively and co-operatively with them on agriculture issues.

[Nia Griffith (Llanelli) (Lab)]

The Secretary of State rightly recognises the severe crisis in the dairy industry, so with the Environment, Food and Rural Affairs Committee’s dairy price report criticising the grocery adjudicator’s role as too narrow and left toothless by this Government’s failure to set the level of fines that she can impose, will he now act with a sense of urgency, push for an immediate review of the adjudicator’s role and give that assurance to Welsh farmers?

[Stephen Crabb]

I am surprised by the tone that the hon. Lady takes. Under the Government that she supported, no progress whatever was made on implementing a code of practice or an adjudicator. As a Government we have been taking forward these measures. We will look at the specific recommendations of the Select Committee report, but we will take no lessons from the Labour party on the dairy sector.

Wales Bill

Nia Griffith Excerpts

Wednesday 10th December 2014 Commons Chamber

[Alun Cairns]

I think the hon. Gentleman is underestimating the capacity of young people to grasp technicalities. I have far more confidence in younger people to be able to consider such matters. He makes an important point, but it could easily be made in another debate. This is about extending the power to the Assembly to decide, and not about extending the franchise to young people per se. We are simply devolving the power. The Assembly has had a vote on extending the franchise to younger voters, and there was a majority in favour of it, but when it comes to make its own choice specifically on a matter such as this, who knows what will ultimately come forward.

As a result, on Third Reading in the other place we tabled amendments to allow the Assembly to decide whether 16 and 17-year-olds should be able to vote in an income tax referendum. As the volume of interventions we have heard indicates, this is the first opportunity the House has had to consider the matter, and I look forward to hearing the contributions that are to follow. It is the Assembly that will decide when to call a referendum, and it is right that it should decide who can vote in it. The amendment puts that decision in the hands of the Assembly, just as it was put in the hands of the Scottish Parliament for September’s referendum.

These amendments also provide that if the Assembly resolves that the voting age is to be lowered to 16, the resulting order to be laid by the Secretary of State would also provide for the creation of a register of young voters. That register would include those who will have attained the age of 16 on the date of the income tax referendum and those age 17 who are not already listed on the register of local government electors as an attainer—that is, a 17-year-old who will turn 18 before the next electoral register is published. The important point is that those who have attained the age of 16 on the date of the poll will be eligible to vote in an income tax referendum if they appear on either the register of young voters or the register of local government electors.

I should also be clear about what these amendments do not do. They do not devolve competence over the wider franchise to the Assembly, as I have previously stated, and they do not allow the Assembly to decide the voting age for any poll other than that for an income tax referendum. The franchise for elections in Wales remains solely within the power of this Parliament. I know that there are strongly held views on both sides of the House about reducing the voting age—we heard some of them earlier. I want to reassure hon. Members who might be concerned that these amendments set a precedent for future elections that they do not. It is important to underline that they do not set a precedent. They relate specifically to an income tax referendum in Wales, and to no other poll. They give the Assembly a choice for that referendum. If and when a trigger vote is held, it would be for the Assembly to decide whether the voting age will be 16 or 18. I therefore ask the House to support these amendments.

[Nia Griffith (Llanelli) (Lab)]

I am pleased to put on record Labour’s support for the Lords amendments to clause 13 and schedule 1, which will enable the Welsh Government to set a voting age of 16 in a future referendum on income tax powers. Labour believes that the National Assembly for Wales should have responsibility for its own electoral arrangements. Lords amendment 14 will insert a new subsection (1A) into clause 13 to provide that if the First Minister or a Welsh Minister moves a resolution in the Assembly under clause 13(1)(a) requesting that an order be made under clause 12 to cause an income tax referendum to be held in Wales, that resolution must state whether the voting age at such a referendum is to be 16 or 18.

I have long been a supporter of votes at 16, on which Labour Members have provided a strong lead. I pay tribute particularly to Julie Morgan, a former MP and now Assembly Member for Cardiff North, and to my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) for their campaigning on the issue. We saw the success of allowing 16 and 17-year-olds to take part in the Scottish independence referendum. Following the Smith commission, responsibility for electoral matters is on the cards to be devolved to Scotland. My right hon. Friend the Member for Doncaster North (Edward Miliband), the leader of the Labour party, has urged the UK Government to ensure that that happens in time for the 2016 elections to the Scottish Parliament. Control over electoral arrangements should likewise be devolved to Wales and Northern Ireland.

The Lords amendments reflect our belief that electoral arrangements should be devolved to Wales and our commitment to extending the franchise for all elections to 16 and 17-year-olds. Furthermore, this week my right hon. Friend made it absolutely clear that a future Labour Government would legislate to lower the voting age to 16, and it would be interesting to hear the Minister’s position on that issue. We would also legislate to devolve electoral arrangements to the Welsh Assembly.

[Jonathan Edwards]

Plaid Cymru tabled amendments similar to those that the hon. Lady mentions during the Bill’s passage through this House, but I do not recall Labour supporting us. Has there been a sea change in Labour party policy since then?

[Nia Griffith]

I have made it clear what our policies are.

With the advent of individual voter registration and the worry that many people, including many young voters, will fail to register under the new rules, which was a point raised by my hon. Friend the Member for Vale of Clwyd (Chris Ruane), lowering the voting—

[Chris Ruane]

A good way of ensuring that there is 100% registration of young people, instead of the current registration rate of 55%, would be if, at the same time as they are issued with a national insurance number at the age of fifteen and three quarters, they were automatically registered to vote.

[Nia Griffith]

My hon. Friend makes a good point. Lowering the voting age to 16 could provide an impetus for registration campaigns in schools, as all young people are in compulsory education until 16. Such campaigns would be another opportunity to encourage young people to register to vote before their 16th birthday, and most would have at least one opportunity to use their vote before leaving home for university or job opportunities elsewhere.

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

Does the hon. Lady agree that as well as a drive to get registration as high as possible, efforts should be made to teach civics in schools to let pupils know the importance of the vote and the issues that they will be voting on?

--- Later in debate ---

[Nia Griffith]

Indeed. The Welsh Government have made significant progress on that matter with the Welsh baccalaureate.

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

Does my hon. Friend agree that there is a fundamental inconsistency in the Government’s position? I totally agree with their wish to devolve responsibility to the Welsh Assembly on matters to do with the referendum, but why cannot there be the same devolution in respect of the age at which people vote in Welsh Assembly elections? It is nothing short of patronising to 16 and 17-year-olds to say, “You might be able to vote in a referendum, but not in constituency or regional-based Assembly elections.” It makes no sense.

[Nia Griffith]

Perhaps the Minister will clarify that later.

In my long experience as a teacher, I always found that young people are ready to engage in discussion on a range of issues, and I have every confidence that 16 and 17-year-olds can be as well informed as other adults in respect of voting options. They have access to a far wider range of media and sources of information than back in 1969, when the voting age was last lowered. Indeed, when many of us were at school, our only access to current affairs came through being encouraged to read the daily papers in the school library.

Sixteen-year-olds can join the armed forces and, with parental consent, get married. Many of them are active in the world of work, whether full or part time, and are therefore subject to employment law and health and safety law, or the lack thereof. They are subject to the law on national insurance contributions and income tax. It is wholly appropriate that the Bill should allow the Welsh Government to state in a resolution to cause an income tax referendum whether the age for qualifying to vote in that referendum should be 18 or 16. We support the Lords amendments.

[Geraint Davies]

In general, for the reasons that we have just heard, I am in favour of reducing the voting age to 16, both because of the increased awareness of young people and because the focus of budgetary control and discussion in the parliamentary arena will shift more towards education and investment in our future. My concern about this move in isolation, with 16-year-olds being allowed to vote on the highly technical issue of marginal tax rates and thresholds, is that the turnout in the referendum will be low, and the turnout of 16 to 18-year-olds will be extremely low and may discredit some of the excellent arguments that have been made for reducing the voting age to 16. I wonder what efforts the Government will make to educate these prospective voters so that they have an informed view about this technical issue.

I was fortunate enough to study economics at university—obviously I understand all these issues—but a lot of people aged 16 to 18 will not have had that benefit. The issues are difficult. I support the move in general, but I am concerned that the turnout will be low, so I wonder what the Government will do about that.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 3rd December 2014 Commons Chamber

[Stephen Crabb]

My hon. Friend talks about an important issue that has been raised by Members on both sides of the House in recent months. I commend his work personally and that of his Select Committee on examining the impact of Severn bridge tolls on businesses and consumers in Wales. I share his concerns about the levels of the tolls. I want a long-term plan in place, so I look forward to discussing his ideas with him in more detail.

[Nia Griffith (Llanelli) (Lab)]

The Secretary of State says that his Government are investing in the electrification of the railways and building a prison, and now he talks about the tidal lagoon, but is not the reality that they have not yet spent a single penny on any of those projects? They have not laid a brick or a yard of electric rail. In fact, the situation is worse, because his Government have cut the Welsh capital budget by a quarter, and no amount of jam tomorrow can sweeten that unpalatable truth.

[Stephen Crabb]

I am genuinely bemused by the hon. Lady’s question. Let us just remind ourselves that under the Labour Government no work was done to improve the M4, and not a single mile of railway line was electrified in Wales. We are cracking on with a long-term plan for infrastructure investment, and I am very proud to be part of a Government who are doing that.

Government Policies (Wales)

Nia Griffith Excerpts

Wednesday 26th November 2014 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

We have had a wide-ranging debate. I will try to focus my comments on the motion, which is about the UK Government policy and its effect on Wales, but of course I will refer to what many hon. Members have said today.

We are talking about the choice that this Government have made about their tax and welfare policies. That choice means that Ministers have deliberately chosen to place a disproportionate burden on those with the lowest incomes in Wales. As we predicted back in 2011, and as has been shown in a recent study from Sheffield Hallam university, in Wales the Tory-Lib Dem Government’s policies on tax credits and welfare have resulted in £1 billion each year being taken out of the Welsh economy, with the losses falling disproportionately on the poorer areas of our communities.

This Government’s changes to tax credits alone have taken £200 million a year out of the Welsh economy. These cuts have meant a loss of income to some 250,000 households across Wales. These are homes where people are in work, often in thankless tasks, often patching together several jobs to try to make ends meet, and working unsocial hours, yet it is Welsh families like these, the very people least able to afford a drop in income, who are losing income. The average loss of income as a result of the Government’s tax credit and welfare policies amounts to some £550 per working age adult in Wales per year, a greater loss than the average for Britain as a whole, which is £470 per annum.

However, in many of our poorest areas, as we heard from my hon. Friend the Member for Vale of Clwyd (Chris Ruane), the average loss is over £1,000 per working age adult, amounting to some £2,000 for a two-adult family or some £40 a week, which is a huge loss when we consider that these people already have some of the lowest incomes in Wales. That takes into consideration only changes to tax credits and welfare; it does not take into account the effects of, for example, the VAT hike, which further curtails spending power.

Not only is it very unfair to take such a disproportionate amount of money from those with the lowest incomes while at the same time handing tax cuts to millionaires, but it is economic madness. It is not rocket science to perceive that those who earn least spend it most quickly in their local communities. They do this out of sheer necessity, spending the money on everyday essentials, so when they suffer cuts in their household incomes, there is an immediate knock-on effect in the local community. Those with the lowest incomes are the least likely to have the financial means to travel far to spend their money, so it is our very poorest communities that suffer the greatest loss. No prizes for guessing that that means the tops of the valleys, the areas furthest from the wealth-generating opportunities of our cities and our major transport infrastructure.

This loss to the Welsh economy has been quantified by the researchers from Sheffield Hallam university as equivalent to the loss of 7,000 full-time equivalent jobs across Wales, but with the highest concentration of such job losses in the areas of greatest deprivation. In reality, that loss of 7,000 full-time equivalent jobs manifests itself in people having their hours cut and not being able to get as many hours work as they would like, and fewer openings for our young people. There are now 71,000 part-time workers in Wales who would like full-time work, up from 54,000 in 2010, so this Government’s taxation and welfare reform is resulting in the poorer areas of Wales getting poorer. By sucking money out of these areas, the Government are making it ever more difficult for these areas to recover economically, and the gap between these areas and the wealthier parts of the UK is growing.

The hon. Member for Aberconwy (Guto Bebb) rightly pointed out that those with entrepreneurial spirit should be praised and he cited some successful businesses. The problem is that the impact of UK Government policies on the poorest areas makes it doubly hard for small businesses in those areas to succeed. My hon. Friend the Member for Vale of Clwyd explained clearly the impact in real terms of the reduction of the Welsh budget by £1.5 billion and the cuts to services. He also graphically pointed out that his area has one of the highest per working age adult losses—it is some £1,400.

My hon. Friend the Member for Ogmore (Huw Irranca-Davies) gave a good example of the reshoring of jobs, which is much to be welcomed. However, he also pointed out the many problems of insecurity, low pay, unfavourable terms and conditions for workers, and the scandal of umbrella companies where workers are actually paying employer contributions as well as their own contributions, leaving some people as much as £100 a week worse off. He welcomed investment in his local area, but pointed out that it is no good if we are not also looking at what type of jobs are being created.

The hon. Member for Ceredigion (Mr Williams) spoke clearly about off-grid issues, the cost of vehicle fuel and the need for a continued roll-out of broadband. He praised Cyfle, an organisation giving young people apprenticeship opportunities through placements in several different companies, because companies cannot always offer a full-time apprenticeship. That is particularly useful in a rural economy. He also mentioned a VAT reduction for tourism businesses, a campaign which he has pursued vigorously.

My hon. Friend the Member for Ynys Môn (Albert Owen) talked about the success of the economy from 1997 to 2007, mentioning that since the downturn things have become more difficult in terms of the types of jobs being created. He mentioned the many mini jobs, the fact that young people are facing a lot of problems when trying to find work, and self-employment not really being what people want—it is sometimes imposed on them because no other option is available. The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) focused on the issue of funding for Wales and possible consequentials on funding for Wales from HS2. He also mentioned that the £1 billion being taken out of the Welsh economy is more than four times the benefit that Wales gets from EU funding.

The hon. Member for Monmouth (David T. C. Davies) gave us a history lesson and his own inimitable view of climate change and green taxes. He also spoke about the dangers of the UK Independence party and about health in Wales.

[Albert Owen]

The hon. Member for Monmouth (David T. C. Davies) would not take an intervention from me at the time, but I wish to correct him on something. He said that the Labour party introduced all these carbon taxes, but I wish to remind the House that this Chancellor introduced carbon floor pricing, the level of which the Government have now had to reduce, and which has had such an impact on manufacturing in Wales.

[Nia Griffith]

My hon. Friend rightly says that it was this Chancellor who set that carbon floor price, causing considerable difficulties for our industries. We are still having to go through hoops with those industries to get the relief they need.

My right hon. Friend the Member for Torfaen (Paul Murphy) stressed the importance to our manufacturers of remaining in the EU and the very real fear that the Conservatives’ shilly-shallying over Europe is driving companies to question whether to make new investment here. Let us make no mistake: if the Government are seen to be rushing for the exit from Europe, we will lose those companies, with the loss of thousands of jobs across Wales.

My hon. Friend the Member for Aberavon (Dr Francis) talked about the second campus of the university of Swansea and the importance of partnership working between the university and the steel industry. My hon. Friend the Member for Islwyn (Chris Evans) praised small businesses in his area, said that we should not be obsessed with constitutional issues and talked about the importance of infrastructure linking Wales to the world.

The question is: what is the Minister going to do to tackle the cost of living crisis? Wages in Wales are simply not keeping up with inflation, with wages up by only 0.6% but prices up by more than 2% this year. People in both north and south Wales pay some of the highest prices for our energy and we have some of the hardest-to-heat homes. In addition, many people live off grid and so have more limited options for heating their homes. So what is he going to do to tackle high energy bills? The market is just not working for consumers in Wales.

Labour Members have made it clear that an incoming Labour Government would freeze energy prices for 17 months for both domestic consumers and businesses, during which time we would reform the energy market so that it works for consumers in Wales. We have also taken on board the policy of paying the winter fuel allowance earlier in the year to those who rely on buying in heating oil or liquefied petroleum gas, so that they can buy their supplies more cheaply. That is a simple move, but Ministers have not even agreed to do that. So when are we going to see some action from this Government to address the concerns of the people of Wales by tackling the high energy prices, job insecurity and the low-wage economy?

Will the Minister tell us now that he will match Labour’s energy price freeze? What will he do about low wages? Will he match our pledge to raise the minimum wage to 58% of median earnings? What will he do to tackle insecurity at work in Wales? Will he sign up to Labour’s pledge to tackle the abusive use of zero-hours contracts? I do not mean just banning exclusivity clauses that force workers to work exclusively for one major employer, important though that is. Will he go further than that, as we will? Will he show some humanity and abolish the bedroom tax in Wales? I guess not. He would rather see the people across Wales working longer for less, the poorest areas in Wales getting poorer, and the people struggling with fuel bills. He is happy to give out tax cuts to millionaires and see a recovery for the few, whereas Labour wants to see a recovery for the many.

Welfare Reform (Welsh Valleys)

Nia Griffith Excerpts

Tuesday 11th November 2014 Westminster Hall

[Wayne David]

My hon. Friend makes her point well. I am aware of an excellent paper prepared by Chwarae Teg that highlights how women are all too often at the sharp end of benefit changes in Wales and elsewhere.

I have been aware of all the changes on an individual basis, as they have affected my constituents, but until recently I was not fully aware of the impact that the reforms are having on the south Wales valleys as a whole.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend agree that it is not simply the individuals who feel the effect, but the small businesses in the area and in our town centres, such as in Llanelli? More and more money is being sucked out of the community. It would be far better to tax the rich, rather than to penalise the poor, because the money of the poor goes straight back into the community.

--- Later in debate ---

[Alun Cairns]

I find it strange that the hon. Gentleman has gone back to the 1980s. I was still in school—that is how long ago it was.

It is relevant that when this Government came to power in 2010, Wales was the poorest part, nationally or regionally, of the United Kingdom. In 1997, when the previous Labour Government came to power, it was not. There needs to be a recognition of the context in which the welfare changes are taking place. The data are quite stark. The hon. Member for Caerphilly mentioned support from European aid that has gone to west Wales and the valleys. I remember that that support was discussed as a one-off opportunity, but we have just come to the third prospective round of European aid. That demonstrates the legacy that the previous Administration left.

[Nia Griffith]

Will the Minister tell us what he is going to do to improve the record of his Government’s Work programme, which is failing the people in the valleys, and particularly those who are furthest from the workplace, such that Oxfam Cymru has said that some people are being “parked” and are not being given the opportunities they should have?

[Alun Cairns]

I am grateful to the hon. Lady for raising that point. I will cover that as I make some progress with my speech.

I want to underline the context in which the Government are responding, with Wales, sadly, the poorest part of the United Kingdom. We inherited a situation in which parts of Wales were also sadly blighted with worklessness. In some communities, a third of the working age population were claiming out-of-work benefits. The Government had to act. We have taken steps—

--- Later in debate ---

[Alun Cairns]

I am grateful to the right hon. Gentleman for making that point, but that report does not take account of the incentives that are built into the welfare reforms, nor does it recognise the increased income that the poorest in the community will receive from the universal credit. I will come to that.

[Nia Griffith]

Will the Minister take up with the Secretary of State for Work and Pensions the serious issue of the taper on universal credit, which will mean that work will not pay? That is exactly the opposite of what he and we want to see.

[Alun Cairns]

I hope to come to universal credit if I make progress in my speech.

Welfare reform is part of the long-term economic plan to stabilise the nation’s economy, to deal with the years of financial mismanagement under the last Government, and to get the people of Britain, including Wales, back to work. The Government want to move people from dependence to independence. We must enable them to free themselves from a lifetime on benefits and enable them to achieve their ambitions.

The previous Government, to their credit, recognised the need for changes to the welfare system. Various Governments attempted to address the issues, but only tweaked an already failed system. Another tweak was not an option. An overhaul was required, so we are creating a new welfare system in Wales and throughout the UK based on flexibility, simplicity and fairness. We want a system that can respond to the modern and flexible labour market, while ensuring that no individual is worse off by accepting a job. We want a system that is easy for people to use.

--- Later in debate ---

[Alun Cairns]

That is one thing that universal credit will put right because people will always be better off. I will come to that in a moment. Our reforms are already reaping benefits. People are moving from dependency on benefits and into work. That is a positive step for Wales, for communities and for the individuals who, for far too long, have been locked in the benefits system.

The welfare system we inherited was built for 1940s society and is no longer able to deliver the support that people need in a modern flexible labour market: the sort of market that communities are already adapting to. Our benefits system needs to reflect that and to support people who need it.

A flexible labour market will be supported by universal credit because households in Wales will be entitled to £163 more a month on average and 75% of those who will gain will be in the bottom 40% of the income distribution curve.

Nia Griffith: Will the Minister look again at research by the Joseph Rowntree Foundation that has shown that some families, by working more hours, will lose out? Will he ask the Secretary of State to look again at how the taper will work in universal credit?

[Alun Cairns]

I will happily look at the Joseph Rowntree Foundation’s report, but I again emphasise that universal credit will leave people with an average of £163 more a month and 75% of them will be in the bottom 40% of income distribution. My point is that the very poorest in society and the community will not only be incentivised by universal credit to get back into work, but receive an uplift in their monthly income as a result, as they stand. People will always be better off in work than in one example I have highlighted in which people were happy to work 16 hours a week because they retained their benefit, but working the 17th hour was simply not worth their while. That was not what they wanted, nor was it what employers wanted because of the inflexibility that that built into the labour market.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 22nd October 2014 Commons Chamber

[Alun Cairns]

The abuse of zero-hours contracts is an important issue and that is why this Government are taking action to ban them. The right hon. Gentleman mentioned people in part-time employment. Only 19% of part-time employees are looking for full-time work. We will take strong action against those employers that are abusing zero-hours contracts, but zero-hours contracts are important to many people, such as carers, to encourage and facilitate their path back to the workplace.

[Nia Griffith (Llanelli) (Lab)]

Over 50,000 workers in Wales are on zero-hours contracts, with all the stress, insecurity and exploitation that that entails. Will the Minister join me in congratulating the trade union USDAW—the Union of Shop, Distributive and Allied Workers—on negotiating annualised contracts for workers with some big retail firms in Wales, giving both sides flexibility but also guaranteed income levels for workers? Will he support Labour’s calls for employees who in reality work regularly to have an automatic right to fixed-hour contracts and the security that such contracts bring?

[Alun Cairns]

I do support the action taken by the union. After all, the last thing we want is the abuse of employees on zero-hours contracts. However, such contracts offer some people flexibility in the workplace. They offer a great opportunity to encourage more people back into work who would not otherwise be able to work.

Wales Bill

Nia Griffith Excerpts

Monday 31st March 2014 Commons Chamber

[Mr Harper]

As I thought, we have competing anecdotes. I suspect that my right hon. Friend, particularly as she describes the more modest circumstances in which she travelled across Wales, was rather closer to the people, so I put more weight on what she says.

Before that constitutional interlude, I was referring to the fact that my right hon. Friend the Secretary of State has taken a lot of care with this Bill. I want to put on the record my appreciation for the Welsh Affairs Committee’s excellent pre-legislative scrutiny report. The Government have obviously taken the trouble to respond to it and, as the Secretary of State said in his written ministerial statement, have accepted most of its recommendations. I think that was an excellent job. Doing pre-legislative scrutiny on a constitutional Bill is very sensible and likely to lead to a more accurate position.

[Nia Griffith (Llanelli) (Lab)]

I wonder whether the hon. Gentleman, who is so keen to praise the Committee’s report, agrees with its statement that

“as a point of principle, we consider it unadvisable for electoral systems to be changed frequently. Successive changes to electoral systems risk being perceived as partisan by the public.”

That is precisely on the point of dual candidacy. In other words, the Committee is saying, “Let’s keep the status quo.” Does he agree with that?

[Mr Harper]

No. I read the Committee’s report very carefully, and it did not say that we should keep the status quo at all; it said what the hon. Lady just read out. All that the Secretary of State’s proposals will do is return the system to the position that existed before the Labour party changed it in the Government of Wales Act 2006. All that we are doing is reversing it and putting it back to the original position. I read the report carefully and I am sure, knowing how Select Committees work—its Chair confirmed that it was quite hard to get agreement—that those words were chosen very carefully, and it absolutely did not say that we should stick with the status quo. My guess is that if someone had suggested that it said that, it would not have received cross-party agreement.

--- Later in debate ---

[Nia Griffith (Llanelli) (Lab)]

We have had a good discussion on the Wales Bill, and a wide range of views have been expressed. We will broadly support the Bill, although we will table amendments in Committee. I put on the record straight off that we disagree with the clause on dual candidacy.

We heard from the right hon. Member for Chesham and Amersham (Mrs Gillan), a former Secretary of State for Wales. She welcomed the Bill and the cross-party participation on the Silk commission. However, she was the only person who regretted that the Bill did not include a clause to reduce the number of MPs in Wales and she felt strongly that there should be no reform of the Barnett formula until the deficit had been brought down—quite what she meant by that, we are not absolutely sure.

The hon. Member for Monmouth (David T. C. Davies), in characteristic form, told us that he saw the Bill as part of a relentless devolution of powers to Wales and likened it to sleepwalking to independence. However, he expressed his support for a federal system. He told us that he would vote and campaign for no in any referendum, although he did rather like the idea of borrowing powers, especially if they led to a relief road for the M4.

We then heard from the hon. Member for Forest of Dean (Mr Harper), who, when he had finished smearing Labour in Wales, got down to the point—

[Mr Harper]

I am sorry, but the only comment I made about the NHS in Wales was about mortality statistics, and I was quoting exactly the right hon. Member for Cynon Valley (Ann Clwyd). If quoting her is smearing, I plead guilty, but I do not think I was doing that; I was raising legitimate concerns on behalf of my constituents.

[Nia Griffith]

Indeed. Perhaps I will move on then. The hon. Gentleman also said that he wanted road bridges to be built with money raised from the Severn road bridge; again, we wonder quite where he is going with that one.

Returning to the Bill, the hon. Gentleman raised valid points about the devolution of stamp duty and land being divided, and referred to confusion between people with certain postcodes whereby, for example, somebody with a Newport postcode ends up, in effect, being put in Wales when in fact they are in England. He also mentioned the complexities of payroll for small businesses in the event of devolution of income tax. I think he is really saying that there needs to be a very thorough impact assessment on all these issues, and we would certainly call for that.

The hon. Member for Brecon and Radnorshire (Roger Williams) emphasised the benefits of holding elections on separate days to avoid confusion, although not all Members agreed. He reiterated his support for the reserved powers model of devolution whereby the assumption should be that the National Assembly for Wales has powers in the devolved areas of responsibility unless otherwise specified.

The hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) said that it is difficult to find anybody in his patch who is interested in more devolution, so perhaps he spends more time in South Pembrokeshire than in west Carmarthenshire. He agreed with the hon. Member for Monmouth about devolution creep. He also noted his disagreement with the academics who are calling for more Assembly Members.

The hon. Member for Aberconwy (Guto Bebb) found himself agreeing with my hon. Friend the Member for Rhondda (Chris Bryant)—that must be a first—on the idea that if anyone changes the term of a Government, it is always to increase it rather than decrease it, and he was sceptical about the need for an increase to five years.

The hon. Member for Arfon (Hywel Williams), speaking on behalf of Plaid Cymru, expressed severe disappointment that the Bill did not fully reflect the Silk commission recommendations. He described the thorough scrutiny of the draft Bill by the Welsh Affairs Committee and explained the potential difficulties in enthusing the electorate about a referendum on tax. He mentioned the Barnett formula and the need for funding reform and told us that Plaid Cymru would table an amendment to allow for devolution of income tax without a referendum.

The hon. Member for Ceredigion (Mr Williams) reminded us that he is a strong supporter of localism and firmly believes that decisions made should be linked with any money raised. He wants to see a positive impact in terms of working together for a referendum. He compared the very thorough scrutiny of the draft Bill with the complete lack of scrutiny of the transparency of lobbying Bill before it came to this House.

My hon. Friend the Member for Swansea East (Mrs James) talked about borrowing and expressed concern about the unfairness to Wales in contrast with Scotland, where it is calculated as 10% of capital budget rather than being contingent on the devolution of taxes.

My right hon. Friend the Member for Neath (Mr Hain) spoke very eloquently about banning dual candidacy, quoting Lord Richard’s evidence to the Welsh Affairs Committee. He reminded the House of the very considerable, bare-faced abuse of the list system and quoted the leaked memorandum from Leanne Wood, the leader of Plaid Cymru, in which she gives explicit instructions to her party’s list Assembly Members to direct their time and resources—paid for by the taxpayer, Mr Deputy Speaker—to Plaid Cymru’s target seats. He also emphasised the need for shared risk on taxation and making sure that Wales does not in any way miss out if income tax powers are devolved.

My hon. Friend the Member for Caerphilly (Wayne David) expressed disappointment that the Bill falls short of fully reflecting what was in the Silk commission report. He also gave contemporary examples of how the list system is being abused, with list Members neglecting much of their area in order to focus almost exclusively on one part of it, with a view to standing for that constituency—exactly following the advice of the Plaid Cymru leader, Leanne Wood, to ignore constituents’ problems and focus solely on what will bring electoral advantage.

My hon. Friend the Member for Islwyn (Chris Evans) reminded us that people have a lot of concerns, and do not have only constitutional issues on their minds. Again, he was concerned about the large number of people living within easy commuting distance of the border and the effects that any change in tax rates could have on either side of the border. He called for a thorough impact assessment.

My hon. Friend the Member for Ynys Môn (Albert Owen), who is a fervent devolutionist but is not for devolution as a route to independence, said it was vital to work with people and to have a referendum on all important decisions.

My hon. Friend the Member for Swansea West (Geraint Davies) referred to the current dispute about railway funding, saying that it was a good example of his worries that weasel words might mean giving with one hand but taking away with the other. He also said that we should look carefully at what exactly the intentions behind the Bill are.

I turn now to some of the more mundane issues dealt with by the Bill. We very much welcome the devolution of the land taxes—stamp duty and landfill tax. They will provide an independent income stream against which the Welsh Government can borrow. We hope that the devolution of those taxes can take place as soon as possible and that the process will not be subject to any unnecessary delays. We understand the logic of the time scale but we urge that it should not be allowed to slip.

We welcome the borrowing powers that the Bill will legislate for, not least because this Tory-led Government have cut the Welsh budget by 10% over the course of this Parliament and have reduced the Welsh Government’s capital budget by nearly a third. Borrowing powers will enable the Welsh Government to invest in vital infrastructure projects to help boost economic development.

[Jonathan Edwards]

The Labour party continually attack the UK Government—and rightly so—for their huge cuts to capital expenditure in Wales, but the Government are following the exact budget lines set by the previous Chancellor of the Exchequer before the 2010 election. The Labour party set a path to cut capital budgets in Wales by 40%. That is what the UK Government have delivered.

[Nia Griffith]

The hon. Gentleman knows full well that the Opposition have very different priorities from the Government in the way that we deal with budgets and decide what our priorities are. Quite frankly, I think that he needs to do a bit more homework before he begins to make these suggestions.

I turn now to income tax. The Opposition do not accept that there is no accountability without the devolution of income tax. The National Assembly for Wales and the Welsh Government are accountable through elections, and Welsh Ministers are subject to the usual scrutiny procedures. Let us look at councils: more of a council’s budget comes through the block grant than from council tax, but nobody says that councils cannot borrow and that council borrowing has to be contingent on further devolution of some income tax powers.

None the less, we accept that the Welsh Government are slightly anomalous in not having the power to raise revenue. The devolution of a number of minor taxes will rectify that anomaly. It should be noted that in their evidence to the Silk commission the Welsh Labour Government did not actually seek the power to vary income tax. However, since the publication of the Silk commission report we have said that we support the recommendation to give Wales the power partially to vary income tax, contingent on a triple lock. That consists of fair funding, agreed by the Welsh and UK Governments; the power being subject to a referendum; and the power being in the long-term interests of Wales—that is to say that it should tested during a period of assignment.

We would like the Secretary of State to give further details on the period of assignment and to provide reassurances about the ability of HMRC to monitor a Welsh rate of income tax. We believe that further examination is needed of the impact of tax competition arising from different rates of income tax on either side of the border. We want to ensure that that looks at the behavioural aspects of what might happen if income tax rates vary on either side of the border.

Turning to the constitutional issues, we believe that the question of five-year terms is a matter for the Assembly. It may not be practical to table an amendment to that effect, but we want to put on record our belief that it should be something for the Assembly to decide.

On double-jobbing, we are very clear that we do not think that an individual should be an MP and an AM at the same time. It is not practical or fair to the electorate and we certainly support the ban in the Bill.

A number of my hon. Friends have referred to dual candidacy and I want to focus on one aspect of it, namely that the impact assessment notes that more people find it confusing and dislike it than those who favour it, and that smaller parties need the system because they are struggling to find candidates. It is pathetic that some of the smaller parties are finding it difficult to find candidates of the right quality. They should be asking themselves why it is that they cannot find anyone. Is the Liberal Democrats’ problem that no young person wants to knock on doors and explain why the Liberal Democrats propped up the Tories to put up student fees to £9,000 in England while in Wales the Labour Welsh Government pegged fees at £3,500? I cannot see any young person wanting to stand for the Lib Dems. Will young people want to stand for Plaid Cymru when they are worried that they might be told, “If you haven’t got two parents who were born in Wales, you can’t represent Wales”?

[Hywel Williams]

Disgraceful!

[Nia Griffith]

Well, that is the sort of thing we have heard Plaid Cymru say about whether the captain of the Welsh rugby team should be captain or not. [Interruption.] Plaid Cymru Members can shout and protest all they like, but that is what they said only three weeks ago.

[Jonathan Edwards]

A smear!

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I think the hon. Members for Arfon (Hywel Williams) and for Carmarthen East and Dinefwr (Jonathan Edwards) need to calm down a little. In fairness, everybody has been able to put their point of view. I am sorry they do not accept what the shadow Minister is saying, but they cannot shout from the Benches in that way.

[Nia Griffith]

I am not sure how the Conservative party will find people to stand for it when many of its Members are simply rubbishing Wales in order to further their electoral interests in England. It may be very difficult for the Conservatives to find people, but if they can they should not try to overturn the ban on the dual candidacy. That is the whole point, is it not?

[Hywel Williams]

Will the hon. Lady give way?

--- Later in debate ---

[Nia Griffith]

I think I have been asked to keep going by Mr Deputy Speaker.

[Mr Deputy Speaker]

Don’t bring me into this! I certainly did not say that. It is up to the shadow Minister whether she wishes to give way, not the advice from the Chair.

[Nia Griffith]

In that case, Plaid Cymru Members have had one intervention already and I think that is enough, especially as they have had a long time today to raise different issues.

We in Llanelli felt let down by the abuse of the dual candidacy system. It was like having a massive cuckoo sitting in a nest in which it did not belong, neglecting all the other constituencies and focusing solely on one, whereas the proper role of a list Assembly Member is to look at broader issues, as Joyce Watson is doing with human trafficking and Rebecca Evans with disability.

We are strongly opposed to clause 2, which would reverse the ban on dual candidacy. Apart from that, we are generally in favour of the Bill and welcome it. I will table amendments in Committee and we will oppose dual candidacy, but all in all we are in favour of the Bill.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 27th June 2012 Commons Chamber

[Mrs Gillan]

There is huge concern among the businesses that I have talked to about any prospect of changes in the corporation tax rate across the border between England and Wales. As my hon. Friend will know, that relates to the purpose of the Silk commission, which I established and which is looking particularly at the areas of taxation and accountability. I hope that it will report later this year and we will be able to see its recommendations.

[Nia Griffith (Llanelli) (Lab)]

Hard-pressed households across Wales will certainly welcome the Chancellor’s latest U-turn on the proposed August increase in fuel duty, but with Office for National Statistics figures today showing that borrowing is rocketing because this Government have created a double-dip recession, will the Secretary of State speak up for struggling businesses in Wales and the 130,000 people still looking for work, and ask the Chancellor to do a U-turn on his economic plans?

[Mrs Gillan]

I welcome the new Opposition Front-Bench team. I also pay tribute to the right hon. Member for Neath (Mr Hain), who stepped down from the Front Bench last month and will be greatly missed. I welcomed the hon. Member for Pontypridd (Owen Smith), the shadow Secretary of State, during the Welsh Grand Committee, but I would like to do so again.

I say to the hon. Member for Llanelli (Nia Griffith) that, in addition to the support we have already announced, the decision that has been made to cut the fuel duty and scrap the previous Government’s fuel duty escalator, thus ensuring that fuel duty is frozen for 21 months, will help businesses and families in Wales. I am very surprised that she did not rise to the Dispatch Box to welcome that.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 25th April 2012 Commons Chamber

[Mrs Gillan]

As the right hon. Lady knows, I have constant discussions with the First Minister and the Welsh Government, as does the Under-Secretary. We have certainly discussed the links and there has been some discussion of Cardiff airport. I am pleased to say that I have invited the owners of the airport to meet me shortly, because I have been concerned about some of the reports I have heard in the press. We should be trying to talk Cardiff airport up, not down.

[Nia Griffith (Llanelli) (Lab)]

I certainly welcome the announcement by the Labour Welsh Government that Tata Steel will invest £800 million in Wales, but as the Secretary of State will know Tata bosses have repeatedly said that the prices they have to pay for energy in the UK are simply not competitive when compared with what industry pays elsewhere. What discussions has she had with the Energy Secretary and energy companies to secure a better deal on energy prices for heavy industry to provide an incentive for companies such as Tata to invest in Wales?

[Mrs Gillan]

One of the first things I did when I was appointed was visit Tata Steel, and I took the Business Secretary, Vince Cable, with me to discuss energy prices. The hon. Lady should know that all the Departments have been focused on the energy-intensive industries because we want to ensure that there are good manufacturing jobs in the future, not just in Wales but elsewhere in the UK. I have read the press release from the Welsh Government and the First Minister and he says that he was told at a meeting in India that £800 million has been approved over the next five years for investment in Tata Steel in Wales. I look forward to seeing the detail, because it seems to be a general announcement at this stage without too much detail attached to it.

Welsh Affairs

Nia Griffith Excerpts

Thursday 1st March 2012 Commons Chamber

[Mr Llwyd]

No; quite the opposite. The whole point of the Development Board for Rural Wales was to assist existing businesses as much as to set up new ones. I remember going to help people and being told, “The bank says I have to borrow a minimum of £20,000, but I only need £10,000 to expand my business.” The board stepped in, and a solution was found in a matter of days. It was an excellent way of dealing with those things. That example related to an indigenous company that was hoping to expand, so no, I do not agree with the hon. Gentleman.

There is some truth in what the hon. Member for Monmouth said about university courses. At one stage, I was rather taken by a course in brewing at Strathclyde, but my father thought that a course in law at Aberystwyth would be preferable and he had the last word, so there we are. The brewing industry has probably lost someone who could have worked wonders. But I shall return to the serious matters.

The commission on devolution is chaired by Paul Silk, and it will report shortly. Everyone knows that it is to examine in two stages what further devolutionary steps could be taken. The first stage relates to fiscal powers. I note with great disappointment that the Labour party has apparently not submitted anything on fiscal powers to the Silk commission. I really cannot understand that. As I have said, I have the highest regard for the right hon. Member for Torfaen. He made the point about a very small minority being in favour of independence in the recent poll, but he did not mention the fact that 60% of those polled were in favour of fiscal powers being devolved to Wales. That is quite a large percentage, given the circumstances.

[Nia Griffith (Llanelli) (Lab)]

Sue Essex is the Labour party representative on that matter. Would the right hon. Gentleman accept that not making written submissions in advance gives her greater flexibility in the negotiations? Might not that be the way forward when trying to get four very different people to agree on something?

[Mr Llwyd]

That is one interpretation of the matter. Others might include disinterest or being dead against any fiscal powers coming to Wales. Who knows? Without anything on paper, we do not know the thinking of the Labour party in Wales. I find that very disappointing.

--- Later in debate ---

[Nia Griffith (Llanelli) (Lab)]

What a pleasure it is to see you here chairing the debate today, Mr Deputy Speaker, and sporting your daffodil. That is absolutely splendid. Before I begin, I should like to put on record the sincere apologies of the shadow Secretary of State, my right hon. Friend the Member for Neath (Mr Hain), who has constituency commitments today.

I should like to thank my right hon. Friend the Member for Torfaen (Paul Murphy), as well as the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) and the hon. Members for Montgomeryshire (Glyn Davies) and for Brecon and Radnorshire (Roger Williams) for making the case for a St David’s day debate to the Backbench Business Committee. I thank the Committee for agreeing to their request.

My right hon. Friend the Member for Torfaen opened the debate by emphasising the importance of Welsh MPs in Westminster, and the complexity of disentangling what constitutes an English matter. He also pointed out the fact that the UK Government’s Health and Social Care Bill could have major implications for the Barnett formula calculations and considerably reduce the Welsh budget. He referred to the importance of everyone, whatever their views, engaging in the discussion ensuing from the Scottish debate on independence.

The Chair of the Welsh Affairs Committee, the hon. Member for Monmouth (David T. C. Davies), focused on the Committee’s recent report on inward investment in Wales. The right hon. Member for Dwyfor Meirionnydd made the case for devolving taxation powers to the Welsh Government. The hon. Member for Cardiff North (Jonathan Evans) spoke of Wales’s sporting prowess and mentioned football governance. He managed to mention a school from his constituency—Whitchurch—as did the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart), who mentioned Whitland. My hon. Friend the Member for Ynys Môn (Albert Owen) then mentioned ysgol Bodedern. We certainly have something to be proud of in our schools in Wales.

My hon. Friend the Member for Swansea East (Mrs James) reminded us of the reality of everyday life for the many less well-off people across Wales who are being badly hit by changes to tax credits and welfare reform. I should like to place on record the fact that my right hon. Friend the Member for East Ham (Stephen Timms) has made the Labour position clear on these matters. It is that there have always been different levels for housing benefit according to regional factors, and it is that part that would vary regionally, not the disability element or any other part of the welfare reforms. My right hon. Friend made that quite clear in the media and at the Dispatch Box during the debate on those issues.

[Guto Bebb]

rose—

[Jonathan Edwards]

rose—

[Nia Griffith]

I will not give way.

The hon. Member for Brecon and Radnorshire spoke of the importance of small businesses in Wales, and my hon. Friend the Member for Vale of Clwyd (Chris Ruane) praised the benefits of mindfulness. The hon. Member for Carmarthen West and South Pembrokeshire reminded us of the beauty of Pembrokeshire, only to be upstaged immediately by my hon. Friend the Member for Ynys Môn. The hon. Gentleman also mentioned the contribution of local companies to the UK economy, which is extremely important.

My hon. Friend the Member for Ynys Môn referred to the need for clear policies on energy, and I shall return to that matter shortly. The hon. Member for Ceredigion (Mr Williams) made the case for devolving Welsh language broadcasting. Sadly, the hon. Member for Aberconwy (Guto Bebb) spent a great deal of time criticising a report, when his constituents would probably have been more interested if he had taken up the very real issue of rocketing prices at the petrol pump, particularly in rural Wales.

If we are to see the economy in Wales flourish, we need economic policies from the UK Government that will stimulate growth. We need fiscal policies that will strike the right balance between paying down the deficit and getting the economy going. We need taxation policies that do not squeeze lower and middle income households so hard that they have no money to put back into the Welsh economy and struggle even to pay the most essential household bills.

I was dismayed to hear the Secretary of State reiterate at Welsh questions yesterday that she was in favour of sticking to plan A. I am sorry to have to point out to her that her Government’s plan A is hurting but not working. Sometimes I wonder what planet she is living on. She only has to walk down any high street in Wales to see shops closing and the economy on its knees. The latest high-profile victim is Peacocks. We certainly welcome its takeover by the Edinburgh Woollen Mill and the jobs that that has secured, but 3,000 jobs will still be lost and more than 200 shops will close, including both the Peacocks stores in Llanelli.

No matter what initiatives the Welsh Government undertake—I point out two in particular: the excellent Jobs Growth Wales programme aimed at creating 4,000 jobs a year, with an emphasis on the private sector; and help for business in the form of some £55 million in grants and loans—UK economic policy is enormously important in helping or hindering the success of those initiatives. When it comes to inward investment to Wales from overseas, I certainly agree that there should be the closest possible collaboration between the Welsh Government and other relevant bodies such as UK Trade & Investment to avoid duplication and increase Wales’s outreach overseas.

We are not going to get anywhere, however, unless we have a UK Government providing the right economic and business climate to make the UK a preferred destination for investment in business and manufacturing. When Labour was in government, an additional 1.1 million new businesses were created. By the time we left office in 2010, the World Bank ranked the UK as the best country in Europe for ease of doing business and fourth best in the world, ahead of the US. While there is always room for improvement and we should seek to streamline wasteful bureaucracy, time-consuming duplication and form filling, to use cutting red tape as the main strategy for driving economic recovery, as this Government seem to be trying to do—and, indeed, as the Under-Secretary for Wales said yesterday at Welsh questions—is addressing the wrong problem. That is to avoid the two very real issues of creating the right economic conditions to foster growth and creating the right political climate—that is, the certainty about policy that is needed to encourage long-term investment in manufacturing and jobs.

The Government’s attitude to business and industry matters—it matters very much to Wales. What business and industry need more than anything are certainty and confidence that the UK Government will not move the goalposts. It is extremely disturbing that this Conservative-Lib Dem Government have created so much uncertainty about their commitment to green policies that the UK has slipped from third to 13th in the world for investment in green growth.

The Secretary of State and her Cabinet colleagues need to restore business confidence and create a climate of certainty before they damage any more industries or frighten off any more potential investors. We have seen how the UK Government’s catastrophic imposition of sudden changes to the feed-in tariffs for solar panels is already putting hundreds of jobs at risk in Wales. Here was a scheme that gave a real boost to private industry in Wales—a scheme that was unlocking capital and attracting people to use their savings or borrow money to invest in solar panels. By investing that £10,000 or £20,000, they were providing private sector jobs in the Welsh economy. What other scheme do the Government have to unlock capital in that way and use it to stimulate growth in the local economy?

As my hon. Friend the Member for Ynys Môn mentioned, before the election Labour set up a £60 million fund to attract investment in offshore wind power. In 2010, the current Prime Minister promised to continue the policy, but nearly two years later just £1.2 million has been awarded and many companies are looking elsewhere to invest. Indeed, big investors in wind energy, such as General Electric, Vestas, Gamesa and Mitsubishi, are threatening to take millions of pounds worth of green jobs abroad because they are losing patience with this Government. They do not know where they stand, and they now seriously doubt the Tory Government’s commitment to renewables.

The UK has some of the best wind resource in the world. Indeed, the UK is the windiest country in the EU, and we have our fair share of it in Wales, but the signals coming from the UK Government are confused, hesitant and lukewarm. When companies are making big decisions about where to build energy installations or set up factories to manufacture the components, they need to know what Government policies are, what returns they can expect and what the financial incentives are—they need a climate of certainty. I urge the Secretary of State and her Cabinet colleagues to provide clear policies to attract green investment.

Moving on to UK Government policy that affects Wales, only a fortnight ago we heard the very worrying news that Britain could lose its treasured triple A rating—the very justification the Chancellor has used for his crippling austerity measures. Why would the UK lose its triple A status? Because this Government have forgotten that in order to pay back the deficit, they also have to think of stimulating growth in the economy to make the money to pay back the deficit. That is where this Government are failing. This Government inherited a growing economy, so it is no wonder that people are asking why we have seen almost no growth for a year and why the Government have had to revise their borrowing up by £158 billion.

We are seeing just what Labour has been warning of since 2010: the Chancellor is cutting too fast and too deep, and by hitting lower and middle income households the hardest, he is hitting the very people who spend their money most immediately back into the Welsh economy just to keep themselves clothed and fed. His policy is not only deeply unfair; it is economic madness. It is already having a direct effect on the Welsh economy, and we have only seen the beginning of the cuts. Let us make no mistake: over the next three years, the Government will—according to House of Commons figures—take £6 billion out of the pockets of people in Wales, and that will include £800 million in tax credits. Tax credits are money that families who are working hard and trying to do the right thing are given to top up their incomes, and they need to spend that money straight away in order to keep their homes warm and their children fed and clothed.

What else is the Chancellor cutting? He is cutting £7 million from health in pregnancy grants, and £113 million from child trust funds, and the freezing of child benefit is equivalent to a cut of £249 million. He is cutting £209 million from disability living allowance, and £43 million from lone parent benefits. All that is coming out of the Welsh economy, as is the £1.5 billion cut that will result from the use of CPI rather than RPI to uprate benefits, and all that is happening against the background of pay freezes—not to mention the more than £2 billion cut represented by the rise in VAT.

What we need now is a real economic stimulus from the UK Government to back up the Welsh Government’s initiatives on jobs and help for industry, and that is what I ask the Secretary of State to provide. I ask her to look at Labour’s five-point plan for stimulating the economy, and to cut VAT, boost jobs and stand up for Wales by doing something that will really help to get the Welsh economy going. People cannot see any help at all coming from the Secretary of State to us. They cannot see the Secretary of State standing up for Wales, and that is what they would like to see.