Employment in Wales

Simon Hart Excerpts

Tuesday 27th January 2015 Westminster Hall

[Chris Ruane]

I am not sure whether the hon. Gentleman has ever experienced that state in his time in Parliament. I am saying that the cuts proposed by my party—indeed, his party has had to make cuts in Gwynedd—are not ideological. They have been practical cuts. The Conservative party wants to introduce cuts for ideological reasons. It wants to cut back the state and sees the public sector and the state as bad. I do not perceive them in that way.

In the autumn statement, the Chancellor said that he wants to see the percentage spent by the state come down to 35% of GDP. His own creation, the Office for Budget Responsibility, said that, if he did that, public sector spending would be at its lowest since the 1930s, before the establishment of the national health service—we spend £115 billion on the NHS, yet the Chancellor wants to take us back to the 1930s. His vision for the UK economy and our society is “The Road to Wigan Pier” and “Love on the Dole”. It is not a vision I share, or one that the Labour party shares; I dare say Plaid Cymru does not share that vision either. It is a dark, bleak vision, offering no hope. The British public, especially in those areas that rely on public sector jobs, will reject the Chancellor’s vision.

Although one faced the effects of recession and the other the effects of war, Franklin D. Roosevelt’s Government of the 1930s and the Labour Government of the 1940s knew that investment and capital projects were the key to recovery and growth. The Labour Welsh Government are heeding the lessons of history and have implemented a huge capital building programme in the Vale of Clwyd. They have invested £100 million in refurbishing ysbyty Glan Clwyd. In partnership with Denbighshire county council, they are investing £70 million in refurbishing and rebuilding schools.

I will graphically illustrate the difference in approach between the Welsh Government and this Government in just one town in my constituency—my home town of Rhyl. The Prime Minister stood at the Dispatch Box and said that the town of Rhyl had been neglected by the Labour Welsh Government and the local authority. While he was speaking those words, he was closing down the Army recruitment centre in John street in Rhyl, which opened in 1914, and was closed in 2014 by the Tories; while he was speaking at the Dispatch Box, he was also closing down Rhyl county court and the tax office in Rhyl, and relocating the Crown post office from Rhyl.

Compare and contrast that with the investment that has come to my home town of Rhyl from the Welsh Government. There is a £10 million new harbour, a £22 million new community hospital, opening in 2017, and £28 million is being spent on replacing the old houses of multiple occupation with decent family accommodation. As we speak, £25 million is being spent on a new high school and £12 million on new flood defences in Rhyl. Now tell me who is neglecting Rhyl.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

The hon. Gentleman needs to be careful about using examples that are tantamount to disingenuous. As far as Army recruitment centres are concerned, I know that he knows that the closures are nothing to do with resource, but to do with different recruitment procedures that are more effective in the 21st century. I would be grateful if he were careful about that.

[Chris Ruane]

The hon. Gentleman may have a point, as the Government have cut back the number of members of the armed forces dramatically; but I see a closure as a closure.

Last Thursday, I met Jane Hutt, the brilliant Welsh Finance Minister who is masterminding much of the investment that I have mentioned. We met at Rhyl high school, which as I said is undergoing a £25 million rebuild. The contractors, Willmott Dixon, said that 60% of the investment will be spent within a 30-mile radius of Rhyl. The jobs, training and growth from that investment will be multiplied many times over because of local procurement. The Labour Welsh Government are playing a vital role in ensuring that my constituency is able to withstand the ravages of Tory cuts.

In Vale of Clwyd and, indeed, in the neighbouring constituency Clwyd West—it is interesting that the right hon. Member for Clwyd West (Mr Jones) is not here today—there is a huge percentage of public sector workers; 37% of the workers in those two constituencies work in the public sector. What will happen when we have these huge cuts? We know what has happened in the past. In the early 1980s, Shotton steelworks closed, and 7,000 jobs were lost in one day—the biggest lay-off in British industrial history—with no help or intervention from the Tories.

--- Later in debate ---

[Chris Ruane]

Absolutely. The Conservative element of the Government thinks we can pull out of Europe, where we do about 40% of our trade, and stick two fingers up to it, and that everything will be the same afterwards—that that trade and co-operation will carry on. That will not be the case. Europe will punish us. It does not want us to pull out; it wants us to be included. We are 60 million people out of 6 billion—1% of the world’s population. If we pull away from Europe, our voice will be miniscule. We are part of the biggest trading bloc in the world’s history.

[Simon Hart]

Will the hon. Gentleman give way?

[Chris Ruane]

No. I will finish on that note.

--- Later in debate ---

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I came into the Chamber at half-past 9 naively hoping for 90 minutes of informed debate, rational argument and, to be honest, a bit of peace and quiet, so I was not really planning to speak, but the hon. Member for Vale of Clwyd (Chris Ruane), who opened the debate, has driven me into an uncharacteristic state of fury and indignation. I hope that people will forgive me if I try to paint a more positive picture of the Wales that I know rather than getting involved in the constant negative talking down of a success story, which seemed to be the main theme of the hon. Gentleman’s speech.

I was also expecting more than we got, which was a series of contradictions. We were told that the wicked coalition was responsible for starving Wales of money, yet in the same breath the hon. Gentleman listed a whole range of ways in which investment has been made available to Rhyl in his area, presumably as a consequence of not only Welsh Government intervention, but the underpinning strength of the UK economy.

[Chris Ruane]

Will the hon. Gentleman give way?

[Simon Hart]

Let me make it clear early on that I probably will not give way to the hon. Gentleman, unless I have a sudden attack of good will. That does not mean that I will not give way to anyone, but I will not be persuaded to do so just yet.

We also heard the contradiction of the hon. Gentleman condemning the coalition’s spending proposals in almost the same week that his party voted in favour of them. Is it any wonder that we question the economic literacy of his case when the shadow Chancellor of the Exchequer—perhaps the hon. Gentleman will have some comments to make about this—told us not long ago that interest rates would go up when in fact they have done down, that inflation would go up when in fact it has gone down, that fuel prices would go up when in fact they have gone down, and that unemployment would go up when in fact it has gone down? Is it any wonder that when the hon. Gentleman starts pontificating about a gloomy prognosis for Wales, we take it with a pretty big pinch of salt?

[Guto Bebb]

Does my hon. Friend agree that there is a danger to the good name of politics in general when Members complain about cuts as they make impassioned speeches, yet vote for them in the House of Commons?

[Simon Hart]

My hon. Friend makes a good point. Sometimes we think that we can get away with saying things in the Chamber because we seem to think that we exist in a bubble and that people are not watching, or listening to and examining the words that we say, whereas in fact, of course, the opposite is the case. That leads me quite neatly to a point that I wanted to make: there is ideology at play here. The Conservative ideology is that we tackle poverty through the creation of jobs and opportunity, yet we heard this morning the Labour ideology that poverty should be tackled simply by swelling the welfare state. If the former is an ideology, I am pretty happy to go along with it, as the route out of poverty is obviously through the creation of jobs. A proper welfare state looks after people who need assistance, not those who simply choose to use it as a lifestyle choice. That is an important ideology, so if an accusation is being pointed at me, I will happily plead guilty to it.

I am offended every time I hear people describe certain jobs in my constituency as somehow unimportant and not proper jobs. I can tell hon. Members that no one feels more patronised than those working in my constituency, whether in agriculture, tourism or engineering, or in a multitude of small and medium-sized businesses, when they hear people from the Labour party describing their jobs as somehow unimportant, unrewarding or unreal. Those jobs are the absolute opposite of those things—they are important.

I remember only too well taking home my first pay packet when I had my first job, which would probably have been described as low-paid, irrelevant and unimportant by one or two Opposition Members. To me, it was the opposite of that. That was the most important moment of my life. The money for that job may not have been as much as I might have got elsewhere, the hours may not have been very special and the terms of my employment may not have been particularly good by today’s standards, but I did not half appreciate it and it put me on the road to a decent work ethic and a hard-working life. That was all because someone gave me the chance to do the job. No one talked down my job in those days, and I do not think that we should talk down people’s jobs today, either.

As we approach the election, it seems to me that Labour’s electoral fortunes depend on fear and failure. It seems that the more fear and failure there is, the more electoral opportunity there is for the Labour party. I find it quite offensive that we should go into an election with one party almost promoting fear and failure as a means to success at the ballot box, and I think that that will reflect badly on it come May.

I put down a challenge to the hon. Member for Vale of Clwyd, so I will take an intervention now if he wants to make one. He condemned pretty well everyone, it seemed, for this country’s economic direction, strategy and success, yet the voters’ attitude seems to suggest that there is precious little confidence in his own party leader in terms of the economic future of the country. Opinion polls clearly show more confidence in the Cameron leadership of the country, in terms of its economic direction, than the Miliband leadership. Perhaps the hon. Gentleman would like to comment on the confidence that he has in his own leader in terms of economic competence and the future of the country.

[Chris Ruane]

The point that I want to make is about the hon. Gentleman’s argument that I was too negative about the economy. Given the rosy picture that he has painted, I think that he is too complacent about the economy. People outside the House do not believe him. The people out there who have suffered a £1,600 loss in their pockets do not believe him.

[Simon Hart]

I am glad that I took that intervention because the hon. Gentleman completely misrepresents my view. No Conservative Member and no colleague in Plaid Cymru or in the Liberal Democrat party—indeed, no politician, candidate or Government—has a monopoly on brilliant ideas, wisdom or compassion. It is crazy to suggest otherwise. I am well aware that there are significant difficulties in my own constituency, which is why I have organised five jobs fairs since I have been a Member. That is why I spend most of my working day trying to resolve such hardships and to point people in the right direction on future job prospects. That is why I deal every day, as we all do, with difficulties when things go wrong.

It is wrong to suggest that we live in a bubble of complacency and that the future is gloomy. The distinction that I am trying to make is that there are plenty of success stories in Wales of which we should be proud. Plenty of indicators suggest that we are pointing in the right direction. I absolutely accept that we are halfway along the road to success. Nobody is suggesting that we have got there and nobody is suggesting that it will not be a hard crawl from here to our destination. What we are suggesting is that to alter the course now would damage the prospects of not only people who are working their way back into employment, but those who already have a secure job.

[Wayne David]

Is the hon. Gentleman happy that so many of his constituents who have recently found employment are on extremely low wages?

[Simon Hart]

I find that question extraordinary. It is like asking whether I am happy with an outbreak of incurable disease. Of course I am not.

[Wayne David]

So what is the hon. Gentleman going to do about it?

[Simon Hart]

What I am trying to do is to be part of an economic policy that creates greater opportunity, higher wages and better long-term prospects for families and individuals in my area. That is what I am driving towards. It is wrong to suggest that I could sit back and feel content if even a single person in my constituency was unemployed for avoidable reasons. I would be upset and disappointed, and I would strive to help them back into employment. The same is true of anybody on an unsustainable wage. The point I am trying to make is that the direction of travel—I hate that expression, so please forgive me for using it—is correct.

I could point the hon. Member for Vale of Clwyd to numerous people in my constituency who have been able to make the transition from the gloomy position that he describes into a more prosperous world with better pay, better conditions and a better job. That is a consequence of confidence among UK, European and global companies, which are investing in our area, and it might not have happened under a different form of economic leadership. That is the point that I am trying to make. Of course we are not there yet—we are some years away—but I think we are on the right path to that kind of success story, which was lacking from the hon. Gentleman’s speech.