Welsh Affairs Debate

Full Debate: Read Full Debate
Department: Wales Office
Thursday 2nd March 2017

(7 years, 2 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Nick Thomas-Symonds Portrait Nick Thomas-Symonds (Torfaen) (Lab)
- Hansard - -

It is always a pleasure to follow my neighbour the hon. Member for Monmouth (David T. C. Davies). I hope that he and I will agree on the principle of the importance of investing and creating jobs in the heads of the valleys.

Economic development will be the focus of my remarks, and we have seen good news in recent days. Yesterday, on St David’s day, the Cardiff capital region city deal was signed, which is clearly good news for south-east Wales. However, there are also concerns about Ford workers in Bridgend, which underlines—if there is any need to—the need for a coherent strategy from the UK Government for the years ahead. Whether people voted leave or remain in last year’s referendum, nobody voted to become poorer. We must ensure that structural funding continues beyond 2020. Foreign direct investment, which was at a 30-year high last year, must continue, and the Welsh Government deserve great credit for continuing to attract such investment to Wales. Steel, which is a foundation industry, must also be central to Wales’s economic future.

The priorities are both immediate and long term. Immediately, we must secure tariff-free access to the single market. Indeed, the Welsh Government’s “Securing Wales’ Future” document, which was produced together with Plaid Cymru, sets out the importance of participation in the single market, and a balanced migration policy, given that over two thirds of Welsh exports go there.

In the longer term, we need a vision of what a post-Brexit Wales should look like. The European Union currently has more than 50 free trade arrangements, which will clearly need replacing. The Brexit White Paper produced by the UK Government contains a chapter on “Securing new trade agreements with other countries”. It has 19 paragraphs, but there is no mention whatsoever of Wales’s position or the Welsh perspective on such trade agreements. However, that same document sets out that some of the fastest growing export markets between 2005 and 2014 were places such as China, South Korea, Brazil, and Mexico. The UK Government must work with the Welsh Government, which already have 14 overseas offices ready to assist with the creation of new trade agreements.

Stephen Crabb Portrait Stephen Crabb
- Hansard - - - Excerpts

My ears pricked up when the hon. Gentleman mentioned that the Welsh Government currently fund 14 overseas offices to assist with international trade. Given the extensive global network of embassies and high commissions that the UK Government fund from Westminster precisely to assist with international development, why should taxpayers fund these duplicate offices?

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - -

In a sense, the right hon. Gentleman makes my point for me: we need a Welsh perspective in the construction of post-Brexit trade deals.

In the teeth of opposition from Conservative Assembly Members, it was very important that the Welsh Government nationalised Cardiff airport, which is crucial to Wales’ economic future.

The constitutional arrangements of Wales in 2017 are different from those that existed in 1972 when Wales entered the then European Economic Community. When the rules currently set in Brussels on matters such as agriculture, the environment or certain parts of transport are repatriated to the United Kingdom, we must ensure that they are not exclusively returned to this Parliament when it would be more appropriate to base them with the Welsh Government in Cardiff. It is vital to bear that in mind in the debates to come.

There is a broader point, and my hon. Friend the Member for Ynys Môn (Albert Owen), whom I congratulate on leading the campaign to secure this debate, put it well when he talked about working now for the 100%. What is in the best interest of the people? Of course it is vital that we retain workers’ rights, environmental protections and consumer protections as we move into a post-Brexit Wales, but let us have the ambition not only to retain those rights and protections but to build on them—to make our consumers better protected, to strengthen environmental protections and to build on the workers’ rights that our membership of the European Union established and deepened over the years.

Our focus on Wales’ economic wellbeing is vital. It is about ensuring that the voice of Wales is heard loud and clear in the negotiations ahead so that we are able to produce the prosperous post-Brexit Wales that we all want.

--- Later in debate ---
Stephen Kinnock Portrait Stephen Kinnock (Aberavon) (Lab)
- Hansard - - - Excerpts

I thank my hon. Friend the Member for Ynys Môn (Albert Owen) for securing this debate.

On 23 June 2016, the UK, Wales and indeed my constituency of Aberavon voted to leave the EU. I accept and respect that result, but not unconditionally. Brexit must be made to work for Wales. That means fighting tooth and nail against a crippling Brexit on WTO terms. The tariff barriers alone would cost £6 billion a year, destroying the automotive sector and crippling our steel industry.

Indeed, just yesterday, as my hon. Friend the Member for Bridgend (Mrs Moon) said, we heard about the job threats at Ford in my neighbouring constituency of Bridgend. This means that the UK Government must protect funding for Wales, so I call on the Government to commit to securing funds through to 2030, on a pound-for-pound match basis, based on current EU structural funding. The current guarantee up to 2020—the year after we are due to have left the EU—is simply not good enough.

The challenges facing my Aberavon constituency serve to demonstrate why the stakes could not be higher, and how desperately the United Kingdom needs a project of national renewal. Such a project must be rooted in the steel industry, because each steel job supports three others in the local community and the country; because each steel job supports a family and the community; and because each steel job supports a way of life and a way of being.

That is why, two weeks ago, the men and women of Tata Steel swallowed a bitter pill to secure the future of their industry, guaranteeing steel production at Port Talbot and across Tata’s operations for the foreseeable future. The vote to close the British Steel pension scheme, transferring it to a defined contribution scheme alternative, was a hard decision, but it was one for the workforce themselves alone. That is why Plaid Cymru’s crude attempt to score cheap political points, manufacturing conflict between the workforce and the unions with a view to securing votes in May’s local elections, was such a shameful spectacle. There can be no excuse for such political opportunism, and I deeply regret Plaid Cymru’s attempts to play politics with steelworkers’ livelihoods. Thankfully, our steelworkers are far too smart to fall for Plaid Cymru’s crass grandstanding and mind games, and they chose to ignore that ill-founded advice.

The workforce have shown their willingness to make real sacrifices to save their industry; Tata has made commitments to secure the industry; and the Welsh Assembly Government have offered £60 million in support and created an enterprise zone to help with business rates, but the Westminster Government have done nothing. They have done nothing on Chinese dumping, energy prices, procurement or skills retention or training, and nothing to help to secure the deal between Tata and the unions. I therefore ask the Government to commit unequivocally today to heed the cross-party “Steel 2020” report—amazingly, I have a copy here—and to a sector deal for steel.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - -

My hon. Friend is talking about the Westminster Government’s inaction, but is the position not slightly worse than he suggests, in that when there were calls to reform the lesser duty rule, far from doing nothing, the Government were at the head of a blocking minority, which prevented that reform?

Stephen Kinnock Portrait Stephen Kinnock
- Hansard - - - Excerpts

My hon. Friend is right. The British Government are notorious for being the ringleader of a group of member states that consistently blocked the European Commission’s attempts to give the anti-dumping regime more teeth. That is a matter of great regret, which reflects the “China first” policy, rather than a “Wales first” policy, that the Government have pursued.

A thriving steel industry must also be a catalyst for the regeneration and development that will happen if the Government get on and approve a city deal for the Swansea Bay area. That will help to regenerate and manage the impact of de-industrialisation. It also makes sense for the Government to give the green light to the Swansea Bay tidal lagoon, an idea whose time has clearly come. The lagoon would create and sustain thousands of jobs and meet 11% of Welsh energy needs with a clean, green, reliable source of sustainable energy.

The Government’s parliamentary boundary review has rather less support in Wales than elsewhere. It disrespects local communities. It proposes to slice Port Talbot town centre in two, leaving the high street and adjacent shopping centre in different constituencies. It is absurd. The review disregards the 2 million people who registered to vote in the referendum campaign and seeks to stifle the voice of Wales by removing more than a quarter of Welsh seats. All that is taking place while the UK Government seem intent on using Brexit to turn the UK into a European version of the Cayman Islands.

--- Later in debate ---
Jessica Morden Portrait Jessica Morden (Newport East) (Lab)
- Hansard - - - Excerpts

This St David’s day debate takes place against the backdrop of Brexit and all the uncertainty that that brings, but, like other hon. Members, I want to talk about some of the positive developments that we have seen in the corner of Wales that I represent with my hon. Friend the Member for Newport West (Paul Flynn) in the year since our last debate. On 14 March, it will be 15 years since Newport achieved city status, and it is no exaggeration to say that there is new life in our city centre thanks to the Friars Walk development, which had 8 million people walk through it in 2016. It has brought 1,500 new jobs and attracted £120 million into the city centre. All credit to Newport Council and its leaders, Bob Bright and Debbie Wilcox, for making that happen.

Coleg Gwent is seeking to relocate to a site next to the University of South Wales to create a knowledge quarter on the banks of the River Usk, and work will begin this month on the international convention centre. Last year, the University of South Wales launched the National Cyber Security Academy, which has been part-funded by the Welsh Government and supported by Airbus and General Dynamics. I am really proud that the cyber-experts of the future are being produced in Newport, in the second-largest cyber-security department after Royal Holloway college. These are positive developments, with Newport Council working with Labour in the Welsh Government and with industry to bring benefits to our constituents.

Other hon. Members have mentioned the Cardiff capital region city deal. The leaders from Newport and Monmouthshire were among the 10 leaders who signed that deal yesterday. The key element in this is the metro. We have had debates in which we have asked the UK Government to guarantee the funding for that, post-Brexit. It is an ambitious project with huge potential for improving connectivity.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - -

The leader from Torfaen also signed that deal yesterday. Does my hon. Friend agree that the crucial element of the deal is its strategic approach to south Wales?

Jessica Morden Portrait Jessica Morden
- Hansard - - - Excerpts

My hon. Friend is exactly right, and we look forward to working in partnership.

As the population grows in the areas of Caldicot, Rogiet, Undy and Magor, it is crucial that we have the infrastructure for a new station in Magor, for which a bid has been put in, and better capacity for the commuter services to Bristol and Cardiff. I hope that the Ministers will pursue this with the Department for Transport.

We should also be talking about the Great Western Cities partnership between Newport, Bristol and Cardiff. This is another potential source of growth, and I am keen to hear from Ministers what they can do to engage with and support it. Those great western cities are interdependent and have key areas that could provide economic growth. Initial work has already shown that the economic benefit that could be generated by improving the connectivity between Bristol, Newport and Cardiff would be greater than that generated by similar investment in Leeds, Manchester and Liverpool. This is a huge opportunity and I would like to see Wales Office Ministers engaging with the project. I was going to let the subject of the Severn bridge tolls go, on this occasion—[Hon. Members: “No! No!”] I will just say that the Government have moved some way, following our long campaign, but it is not far enough. We will continue to campaign on that issue.

Finally, I want to highlight some other matters on behalf of my constituents. The first is steel. I have spoken many times about the importance of steel to my constituency, and I have been heartened by the investment being put in by Liberty. The Tata workers in the steel industry have made a difficult decision in agreeing to the pension proposals. They are doing their bit, and it is now up to Tata and the UK Government to ensure that there is a sustainable future for the Welsh sites, including Llanwern and Orb.

The second issue is personal independence payments. The Government’s announcement about the changes to PIPs last week has caused huge anxiety out there among constituents who are already struggling with the process. I cannot be alone in seeing surgeries full of people who are waiting too long for assessments and decisions, and long-term disabled people who are getting turned down, with all the distress that that causes. Last week’s statement will only add to that distress. Many disabled people who I know feel that they are always in line for cuts and that there are no guarantees that those facing reassessment will not see their awards cut. Will Ministers take back to the Department for Work and Pensions the message that, rather than making the process more difficult, what is needed are fewer delays, more consistency in decision making and more discussion with disabled people’s organisations before bringing forward regulations such as these.

Last but not least: the police. Today’s report by Her Majesty’s inspectorate of constabulary highlights the fact that the police are struggling with cuts and that their response to the public is suffering. Gwent is rated “good” in HMIC’s assessment, and I am really pleased that it is in the top 10 best performing forces for cases involving domestic violence. However, the police are clearly struggling to do much more—there are more complex cases—with less. The debates that we have had in this place have highlighted that fact, and I would like to see Ministers fighting the corner for Welsh police forces and the service they provide to our constituents, to ensure that they are properly funded and can do their crucial job well.