Oral Answers to Questions

Stephen Crabb Excerpts

Wednesday 26th March 2014 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

1. What discussions he has had with the Chancellor of the Exchequer on removing VAT from the Severn bridge tolls.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

My hon. Friend the Secretary of State has regular discussions with the Chancellor of the Exchequer. Once the Severn crossings revert to public ownership at the end of the concession, which is anticipated to be in 2018, VAT will no longer be payable on the tolls.

[Kevin Brennan]

Will the Minister confirm that in their discussions with the Chancellor of the Exchequer, he and the Welsh Secretary have firmly taken this matter into account and that, should there be a continuation of this Administration, they are committed to removing this VAT, which is basically a tax on the south Wales economy?

[Stephen Crabb]

We in the Wales Office are very mindful of the concerns of businesses in south Wales, in particular, about the levels of tolls. No decisions have yet been made on what the tolling regime will look like at the end of the concession period after 2018, but we are hearing representations from Welsh business. As the Under-Secretary of State for Transport, my hon. Friend the Member for Scarborough and Whitby (Mr Goodwill), confirmed in a recent Westminster Hall debate, at the end of the concession period, VAT is no longer to be levied on the tolls.

[Hywel Williams (Arfon) (PC)]

Will the Minister also press the Treasury to look at VAT on the tourism business, which would be a great fillip to employment and to the rural economy?

[Stephen Crabb]

We have discussed VAT and tourism on several occasions at Wales questions. The fact remains that if we were to lower VAT on tourism and hospitality in the way that I think the hon. Gentleman is suggesting, somebody else has to pay the shortfall. Taxation will need to be levied elsewhere at a time when we have to bring in some revenue to make further progress on reducing the deficit.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

2. What discussions he has had with the Department of Health and Ministers of the Welsh Government on facilitating access for patients from Wales and English border areas to hospital services in England.

--- Later in debate ---

[Albert Owen (Ynys Môn) (Lab)]

5. What estimate he has made of the number of jobs in Wales that depend on the UK’s membership of the EU.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

Businesses in Wales and across the UK are not satisfied with the current relationship with the EU, and want reform and renegotiation. That is what our Prime Minister is committed to achieving to boost our growth and competitiveness, and to secure new jobs.

[Albert Owen]

I am surprised that the Minister did not mention the number of jobs that are dependent on the EU. He will know that the business community wants both stability and certainty, and they want to see Wales at the heart of the United Kingdom and the European Union. Does he therefore agree with the CBI, which says that Labour’s policy of reforming from within is good for jobs in Wales and the United Kingdom?

[Stephen Crabb]

I am surprised by the hon. Gentleman’s question, because he should know that 77% of all British businesses support the position that this Government are taking on reform and renegotiation. That position is supported by the CBI, the Institute of Directors and the British Chambers of Commerce. There is widespread support within the business community for reforming our relationship with Europe to become more competitive, and to secure new investment and jobs.

[Mr Mark Williams (Ceredigion) (LD)]

The Government’s position is not, however, supported by the Farmers Union of Wales. Given that €400 million are pumped into the rural Welsh economy, convergence funding for west Wales and the valleys has had a huge impact. Will my hon. Friend be cheering on Nick or Nigel in this evening’s debate?

[Stephen Crabb]

The hon. Gentleman will forgive me if I say that I will be cheering on neither Nick nor Nigel in this evening’s debate. I hear what he is saying. I, too, speak to a lot of farmers in west Wales and they tell me that they do not want to be seen as just reliant on handouts from the European Union. They want to be regarded as business men and women in their own right, so they support our position to reform the European Union and to become more competitive.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Minister should be aware that 150,000 jobs in Wales and 25,000 jobs in the Swansea bay city region depend on trade with Europe. Does he accept that firms such as Unilever, Nissan and others are saying that even talk of a referendum is undermining investment and jobs in Wales today, and that if we do in fact end up outside Europe following a referendum, they will withdraw jobs and investment from Wales and Britain? Will he therefore oppose such a referendum?

[Stephen Crabb]

The hon. Gentleman’s position is not correct and is not supported by the facts on the ground. He should not scaremonger and use old figures to suggest that businesses are scared to talk about reform and renegotiation. Investment is coming into the United Kingdom and into Wales. The prospects for the Welsh economy are very positive indeed.

[Alun Cairns (Vale of Glamorgan) (Con)]

6. What discussions he has had with Ministers of the Welsh Government on NHS waiting times in Wales.

--- Later in debate ---

[Paul Flynn (Newport West) (Lab)]

9. What recent discussions he has had with the First Minister of Wales on maximising tourism opportunities in south-East Wales.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

The Secretary of State has had a number of discussions with the First Minister, in particular on the opportunities that hosting the NATO summit will bring.

[Paul Flynn]

Newport’s magnificent Tredegar House trebled its numbers of visitors last year, and visitors to the city’s Roman baths, amphitheatre and museum are at a record high. What will the Minister do to encourage more people to have the unique, enjoyable experience of a visit to Newport?

[Stephen Crabb]

My right hon. Friend the Prime Minister is clear that hosting the NATO summit is a huge opportunity to showcase the best of Wales, and particularly south-east Wales. I am delighted to tell the hon. Gentleman that my colleagues in the Wales Offices have recently visited both those tourist attractions and are well aware of the opportunities they afford for visitors to the summit.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

rose—

[Mr MacNeil]

Surely tourism in Wales would be helped by action on VAT, as in the Republic of Ireland, and that would also help my constituency of Na h-Eileanan an Iar.

[Stephen Crabb]

Visitor numbers to Wales increased strongly last year and they are increasing faster than for visitors to England and Scotland. There is no evidence to suggest that VAT rates are a deterrent for visitors to Wales.

[Mr Speaker]

The principals are present and correct and we can proceed with questions to the Prime Minister.