1. What recent discussions he has had with the First Minister on the future of the aluminium industry in Wales. (308870)

We remain committed to supporting the aluminium industry in Wales, as we demonstrated with our strenuous efforts to save jobs at Anglesey Aluminium over the summer.

To be fair to the Government, I guess that they did as much as they could to try to ensure the survival of Anglesey Aluminium, but is not the fundamental problem the operation of the European Union emissions trading system, which is making it increasingly difficult for primary metallurgical industries to operate in the EU? It would be all well and good if it resulted in the reduction of global CO₂, but it merely results in carbon leakage to other economies such as China and India, which are not constrained in the same way.

The hon. Gentleman is perfectly correct about the Labour Government’s efforts with regard to Anglesey Aluminium. We made strenuous and laborious efforts over the summer to try to save those jobs as far as we possibly could, but unfortunately, for commercial reasons, the company was not able to accept the offer that was made to it. I must say that we remain committed to the aluminium industry generally in Wales and, of course, in the whole of the United Kingdom, but it is important to recognise that we operate within a European Union framework. Naturally, we are concerned about the environment and carbon emissions, and we are doing everything possible to work with our European partners to ensure that those emissions are kept to an absolute minimum. It is important to recognise also that European Union directives have an important role to play in sustaining this country’s economy.

A happy new year to you, Mr. Speaker, and to all Members.

The decision by Rio Tinto Alcan to cease production at Anglesey Aluminium has left a massive hole in the regional economy of north-west Wales, but I put on the record my thanks to the Wales Office and, indeed, to the Government for their efforts with their generous offer and intervention to keep production going. Unfortunately, the company’s internal matters took precedence.

Looking forward to the future use of the land on the Anglesey Aluminium site and the concept of green energy, does the Minister agree that we need to move forward to ensure that those jobs are kept on Anglesey? Will he meet the First Minister to ensure that priority is given to Anglesey?

I also wish my hon. Friend a happy new year. I am sure that it will be a happy new year for Labour, too. The prospects for the island of Anglesey are rosy. For example, I welcome the decision by the Nuclear Decommissioning Authority to consider Wylfa as a potential site for new nuclear build, and obviously we are looking at various options to ensure that the available land on the Anglesey Aluminium site is used in the most productive way possible. I am aware that a very positive meeting occurred between representatives of a certain company, my hon. Friend and the Secretary of State for Wales, and I am sure that those deliberations will continue. I shall use my good offices to hold discussions with the First Minister as well.

In 2007, when Lord Mandelson was European Trade Commissioner, he promoted a scheme for halving duty on the imports of aluminium to the EU. That was to the significant benefit of the Russian aluminium industry. To what extent does the Minister consider that that decision contributed to the demise of Anglesey Aluminium?

I do not believe that it was a factor in any way at all, because the aluminium industry throughout the world has faced difficulties. We are of the view that working closely with our European partners is entirely positive, and that is recognised by Rio Tinto, for example, which is an international player. Of course, discussions take place with the European Union, but it is important to recognise that we live in an international community, and the European Union is a big and positive player.

2. What assessment he has made of progress on the car scrappage scheme in Wales; and if he will make a statement. (308871)

Since its launch, the car scrappage scheme has generated more than 291,000 orders for new vehicles in the UK, with about 14,500 of those orders having been made in Wales.

I thank my right hon. Friend for his response, particularly as it confirms my own view. Does he agree that the car scrappage scheme has been of greater value to the British and, indeed, Welsh economies than would have been the Opposition’s proposals to cut inheritance tax for their wealthy supporters?

I could not have put it better myself; my hon. Friend has got it in one. Rather than wasting public sector money on the richest people in Britain, very few of them in Wales, with inheritance tax giveaways, our putting money into the car scrappage scheme has increased production by a fifth at Ford Bridgend and resulted in a fifth of all new car registrations throughout the UK. That is active government—government supporting people, not favouring a tiny, rich few.

3. What assessment he has made of the potential effects of construction work on new wind farms in Montgomeryshire on the level of traffic and the environment in that area. (308872)

We firmly believe in the long-term benefits of wind energy. Any assessment of traffic and the environment would, of course, be a matter for the relevant planning authority.

Many in Welshpool, Cefn Coch and across Montgomeryshire are very worried about the thousands of slow-moving lorry loads required to build potentially 700-plus turbines, which will cause traffic gridlock. They are also concerned about the environmental impact of the turbines themselves. Will the Minister meet me to hear in more detail the concerns about the traffic flows and about the environmental impact of turbines, if they are built?

Of course wind energy is the most commercially viable renewable technology available, so it is important to go along and enhance its development whenever possible. I hear what the hon. Gentleman says and I was in Welshpool last year myself and saw the area that he talked about. We will continue to monitor the situation while recognising that responsibility lies with the Welsh Assembly Government, but I would be happy to have further discussions with the hon. Gentleman and other colleagues on this matter in future.

4. What recent discussions he has had with the Secretary of State for Work and Pensions on the level of economic inactivity in Wales.

Because of the actions my right hon. Friend the Secretary of State for Work and Pensions and the Government have taken to preserve jobs and get people back to work, the level of economic inactivity in Wales fell by 3,000 from the last quarter. We will not let short-term job losses turn into long-term unemployment. We will not allow Welsh communities to be scarred by worklessness again.

I am grateful for that answer. The Secretary of State recently said in the Welsh Grand Committee that unemployment in Wales may well keep rising for some time during 2010. Has he made any estimate of the level at which he thinks unemployment may peak during this recession?

What has been interesting is that all the commentators are now saying that unemployment will peak at a far lower level than has been said by the Opposition and was previously feared. We have now seen economic activity rates in Wales down 3,000; jobseeker’s allowance and claimant count figures down 500; vacancies up 2,000; and unemployment still up 93,000 in Wales on what we inherited from the miserable Conservative Government last time.

My local authority of Cynon, Rhondda and Taff is particularly pleased with the future jobs fund and the impact it is having on employment in the Cynon valley. Will my right hon. Friend assure me that the Government will continue to protect those who are out of work—unlike the Conservative party in the 1980s, which threw people on the scrapheap?

Again, my Back-Bench colleagues are eloquent in their denunciation of failed policies on the other side of the House.

They would be, wouldn’t they?

Well, they would be because they represent Welsh seats that were devastated by Tory policies in the 1980s and 1990s when the number of people on incapacity benefit in constituencies such as that of my right hon. Friend the Member for Cynon Valley (Ann Clwyd) and mine tripled. It has been coming down under Labour. My right hon. Friend is absolutely right that we have seen active Government intervention, spending and investing over the past two years—continuing into the future—rather than a Government who will slash spending and condemn people to losing jobs, bankrupting businesses, plunging Britain and Wales into exactly the same cycle of decline and depression from which we rescued Britain and Wales when we came to power in 1997.

In the Witney constituency of the Leader of the Opposition, 10 claimants are chasing every vacancy. In the Rhondda, 75 claimants are chasing every vacancy, while in Neath it is 35. Will the Secretary of State press his colleague in the Department for Work and Pensions to modulate the pressure on claimants to find work, reflecting local conditions such as those I mentioned? To do otherwise, I think, would be both impractical and inhumane.

I take the hon. Gentleman’s point, and if he has any concrete examples, I would be happy to take them up with my right hon. Friend the Secretary of State for Work and Pensions. The hon. Gentleman will understand the imperative of encouraging people to stay in the world of work. If, sadly, people have been made unemployed, what we are doing, which was not done in the 1980s and 1990s, is to provide them with job opportunities, training and support so that when vacancies arise—there are more and more of them in the Welsh economy generally— they can take that opportunity locally. About half the claimants leave jobseeker’s allowance within three months and more than 70 per cent. within six months—a far better record than in the miserable Tory 1980s and 1990s.

Does my right hon. Friend agree that the growth in the manufacturing industry that was noted in the purchasing managers index survey published on Monday will be good news for Wales, bearing in mind our above-average dependency on manufacturing industry? Does he not think that that will help to bring down the level of economic inactivity?

I do indeed. No one is suggesting that this recession has been anything other than extremely difficult for businesses and for those whose jobs have been under threat, but my hon. Friend is absolutely right: the latest PMI index report shows that private sector growth in Wales increased in November for the seventh successive month. Manufacturing is up, and employment rose for the first time in two years. Wales was the only UK region to record job creation during November, and the latest figures show that the growth in exports from Wales since 1999 was greater than in all the rest of the UK put together. That is a good record under Labour.

Perhaps the Secretary of State will take off his rose-tinted glasses. Under Labour, more than 100,000 more people are economically inactive in Wales than the entire population of Cardiff. In the past year, the number of long-term unemployed has more than doubled. Welsh gross value added has gone backwards compared with the rest of the UK, and Wales is the poorest part of the country. What effect does the Secretary of State think that that is having on the social fabric of Wales?

The difference between this, the deepest recession that Britain has faced in generations, and the much lighter recessions that the Tory Governments completely failed to deal with in the 1980s and 1990s in Wales is that people are now being helped out of difficulty and the economy is starting to recover. It is recovering much more quickly than people expected, and much more quickly than the doom merchants on the Conservative Benches who have been talking Wales down have been saying it would. That is because we have adopted active government policies to invest in jobs and support businesses, rather than turning our backs on businesses as was done in the Tory 1980s and 1990s.

I do not live in the 1980s; I live now. Given the importance of employment in agriculture, is the Secretary of State concerned that under Labour, gross value added per capita for Welsh agriculture has fallen by more than 68 per cent., or more than two thirds? This shocking decline is worse than in any other part of the United Kingdom. Is it not a fact that the legacy of Labour in Wales will be more unemployment, more poverty, more debt and a devastated rural economy?

The problem is that hundreds of thousands of people in Wales had to live in the 1980s and 1990s under a Tory Government. That is why we are determined to prevent the Tories from inflicting such misery on them again. The hon. Lady does not acknowledge that there are now 93,000 more jobs in Wales than when we followed the Tories into power, despite this being the most difficult recession for 60 years. That is a record of Labour success against Tory failure.

5. What recent discussions he has had with the Chancellor of the Exchequer on the operation of the Barnett formula in Wales. (308874)

8. What assessment he has made of the recommendations of the Holtham commission on funding and finance for Wales; and when the Government plan to implement the recommendations that they accept. (308877)

The Holtham report made it clear that, although funding is currently at a fair level, spending allotted to Wales could decline in relation to that of England. That is why I have fought hard for an historic new commitment from the Treasury on funding, to prevent the people of Wales from being disadvantaged in the future.

I fully recognise the autonomy of the Welsh Assembly Government in determining specific spending priorities. What can the Secretary of State tell me, following his discussions with Welsh Assembly Ministers, that will reassure my constituents about the overall level of funding available for public services in Wales?

I remind my hon. Friend, the House and the people of Wales that the Welsh budget has more than doubled under Labour, going up from about £7 billion to nearly £16 billion next year. Again, that is a fantastic record compared with the Tory years. Spending on health services in Wales has more than doubled, for example, and there are now more nurses, more doctors and more health workers. That is a record of Labour’s success that should reassure my hon. Friend, but we must protect Wales’s budget in the future.

Now that there is irrefutable evidence of the unfairness of the Barnett formula, the time is surely right for a new formula to be devised on the basis of need. The Secretary of State said that he had an understanding with the Treasury, but Ministers have always been able to argue for more money for their Departments. What we really need is a fair structure. Can we not work together to achieve that?

I congratulate the hon. Gentleman on his modesty. Before Christmas, he told a media outlet that his favourite literary character is Superman. “Is it a bird? Is it a plane? No, it’s the hon. Member for Meirionnydd Nant Conwy!”

I agree with the hon. Gentleman and I am happy to work with him, because the issue is one for Wales as a whole. To his and his colleagues’ credit, they have asked questions about the Barnett formula. The formula has worked fairly up to now, as the Holtham commission said, but we need to ensure that it works fairly in future. That is why the formula and the agreement I got with the Treasury for assessing the allocation to Wales under the comprehensive spending review have to be refined to protect Wales’s future.

Does my right hon. Friend accept that as well as moving to the fairest possible system for the allocation of finances, we must understand that the problem with formulae is always unpredictable year-on-year fluctuations? We have seen that in local government, police, health service and other formulae. Will he ensure that any new system makes sure that there is predictable income year on year, whatever the elements on which it is based?

As always, my right hon. Friend makes a very telling point. This goes to the heart of the issue, which is that the Holtham report showed that although Wales had been treated more or less fairly, under seriously large increases in public spending we could see a convergence between Wales and the English average, which would disadvantage Wales against those areas of England that are most comparable with it, particularly the north-east. That is why we needed a new approach that underpinned the Barnett formula with an assessment that ensures every time that Wales is not disadvantaged—it puts a floor, as it were, under convergence—which is what I have achieved.

6. How many road traffic accidents there were in Wales in the latest period for which figures are available. (308875)

The number of people killed or seriously injured in 2008 was 1,395, which is 31 per cent. lower than the average in the period 1994 to 1998. In 2008, 7,783 road accidents involving personal injury were reported in Wales. We are taking steps to reduce road traffic accidents still further. Interruption.]

Order. There are far too many private conversations taking place in the Chamber. The House must come to order, and I know that it will want to listen to the hon. Member for Croydon, Central (Mr. Pelling).

The debacle last winter of clearing the roads of snow and ice is perhaps being repeated this winter, with the roads up the valleys in south Wales being closed. Is it safe for my constituents from Croydon, Central, some of whom are Welsh and want to visit relatives, to visit Wales at this time?

The Government in all parts of the United Kingdom are taking drastic action to ensure the greatest free movement of traffic possible. As far as the Welsh Assembly Government are concerned, an announcement has been made that stocks are held for motorways. They are ensuring that stocks that are available for motorways are, if necessary, being made available for local authorities to help with other roads in Wales.

The travel conditions in the snow at the moment are important and we all appreciate the difficulties. However, going back to serious measures that deal with road traffic accidents in Wales, I am sure the Minister will join me in congratulating the Welsh Assembly Government on their initiative to reduce speeds outside schools to 20 mph. That is a really important initiative that helps to save lives.

My hon. Friend is perfectly correct. The Welsh Assembly Government and police forces are working together in Wales on a number of initiatives to improve safety generally, and the one she cites is a very good example. Action is being taken outside a number of schools in Wales to ensure that there is the smallest possible chance of accidents, and it is proving to be extremely effective.

Statistics show that more than one third of all road traffic accidents in Wales in 2008, including 52 deaths and 372 serious injuries, involved young people between the ages of 16 and 25. Many of those accidents could be prevented by better training for young and newly qualified drivers. With that in mind, will the Under-Secretary meet me, other like-minded Members of Parliament and academics from Cardiff university who are involved in those issues, to see whether we can find ways to ensure that newly qualified young drivers can drive more safely, and thus reduce the tragic number of lost young lives?

The Government are making good progress on reducing fatalities and serious injuries. A 40 per cent. reduction target has been set and we are making good progress towards achieving it. However, the hon. Gentleman is right to say that we need to focus on young people, and the Government are doing that. I would be happy to have further discussions with him to see how that can be taken forward.

7. What recent discussions he has had with the Secretary of State for Work and Pensions on the progress of the future jobs fund in Wales. (308876)

The £1 billion future jobs fund is already creating 4,300 jobs where they are needed most in Wales, including through the successful Merthyr Tydfil borough council bid, which alone will create more than 700 jobs in Merthyr and the nearby communities, helping many of my hon. Friend’s young constituents to find jobs.

I thank my right hon. Friend for that answer, which is in stark contrast to the abandonment of young people in the valleys by the Tories in previous recessions. What discussions will he have about economic regeneration and training opportunities to consolidate those that are available, so that the future jobs fund becomes an opportunity for future employment?

I applaud my hon. Friend’s diligent application in supporting his constituents and his expert knowledge of the schemes. I am happy to continue to explore ways in which we can take them forward—they matter so much to Merthyr and areas such as my constituency. I agree with my hon. Friend: I do not understand how the Leader of the Opposition can want to stop the future jobs fund and prevent funding from coming in to support young people, thus condemning them to the misery and unemployment that they suffered in the 1980s and 1990s under a Tory Government. That would be repeated if the right hon. Gentleman got power.

Despite the benefits of the future jobs fund—I pay tribute to it for the jobs that have been created in my constituency—45 per cent. of those unemployed are under 25. Does the Secretary of State share the concerns of the Prince’s Trust about opportunities for young entrepreneurs to create businesses and jobs for the future?

I very much agree with the hon. Gentleman. As he knows, one of the future jobs fund schemes is in Ceredigion. The Prince’s Trust does fantastic work in Wales and elsewhere, and we should support its efforts to encourage young entrepreneurs to get themselves out of the crisis. That said, because of active Labour Government investment and the policies that we have pursued, youth unemployment is a third lower than it was in the early 1990s under the Tories. [Interruption.]

Order. There is still far too much noise in the Chamber. It is unfair to hon. Members asking questions and, indeed, to Ministers answering them.

9. What recent discussions he has had with the First Minister on assisting young people into employment; and if he will make a statement. (308878)

We know that young people in Wales and throughout the United Kingdom have been hit particularly hard by the recession. That is why we quickly introduced measures such as the young person’s guarantee and the future jobs fund—to help them to find work as quickly as possible.

Further to the questions asked by my hon. Friends the Members for Ynys Môn (Albert Owen) and for Merthyr Tydfil and Rhymney (Mr. Havard), my hon. Friend knows that when larger employers close, it has the social effect of well-paid jobs and apprenticeships being lost. What is he doing to ensure that well-paid jobs and apprenticeships are maintained in affected areas?

It is important to remember that some 54,000 young people have been helped into work in Wales through a new deal for young people and £1 billion has been set aside in the future jobs fund. Those schemes are creating real jobs for young people the length and breadth of the United Kingdom, including Wales. I find it strange that Opposition Members opposed both initiatives. We are adamant that the mistakes of the past in the 1980s and 1990s will not be repeated. We will not stand aside and allow our young people to be lost from work for a whole generation.

But is it not the truth that this Government’s approach to youth unemployment has been characterised by massive complacency and a failure to engage with the issue? When the Minister and the Secretary of State met for their friendly pint with the new First Minister last night, what practical steps did they agree on to rescue Wales’s lost generation of young people—the tens of thousands of youngsters doing nothing constructive with their lives?

The most important thing to realise is that we will not repeat the mistakes of the Tory past. That is the lesson that we have learned here at Westminster, and that the Welsh Assembly Government in Cardiff are learning as well. We are working together in a spirit of partnership to make sure that as many people as possible are put back into work as soon as possible, and our progress is there for all to see. If the Tory policies were implemented, there would be far more unemployed people in Wales than there currently are.

Will my hon. Friend join me in congratulating the Rhyl city strategy team on its successful bid for the future jobs fund, which will put 320 young people back to work in my constituency over the next six months?

I congratulate my hon. Friend on the excellent work he has been doing. What is happening in Rhyl is a good example of what can be achieved through proactive government at local authority level, Welsh Assembly level and here at Westminster as well. It is an excellent example of what can be achieved when we all work together and we do not stand to one side. It is worth remembering, too, that unemployment in Wales is still 30 per cent. lower than at the height of the early ’90s; we will not forget that.