The Secretary of State was asked—
Inward Investment
1. What steps she is taking to promote Wales as a destination for inward investment. (96367)
You may have noticed, Mr Speaker, that some Members are wearing leek ties or daffodils in advance of St David’s day. May I take this opportunity to wish everybody a happy St David’s day for tomorrow, 1 March?
I am committed to working with UK Trade & Investment, the Welsh Government and others to improve the level of inward investment that is attracted to Wales. Last week’s report by the Welsh Affairs Committee highlights a number of important issues. In particular, the need for joint working between this Government and the Welsh Government is very clear.
Does my right hon. Friend welcome the Welsh Affairs Committee report and agree with it that the Welsh Government should engage more positively with the UK Government to attract investment to Wales?
I can reassure my hon. Friend that I welcome the sterling work of the Welsh Affairs Committee, as I am sure do all Members, given that it was a unanimous report. It highlights areas that must be addressed by the UK Government and the Welsh Government. Recently, I met Nick Baird, the chief executive of UKTI, to discuss the response. I have said right from the start of this Government that I want to encourage closer working between the Welsh Government and the UK Government, particularly in the light of some of the disappointing figures in Wales.
General Dynamics has celebrated 10 successful years in my constituency. Will the Secretary of State congratulate the Labour Government, who were instrumental in bringing General Dynamics to my constituency?
I have always said that politicians of all parties should co-operate to bring inward investment to both the United Kingdom and Wales. I have great pleasure in congratulating any individuals who were involved in bringing General Dynamics to Wales. I have visited General Dynamics on many occasions and it is an excellent company. I am pleased to concur with the hon. Gentleman’s sentiment.
Does the Secretary of State believe that restoring the Welsh Development Agency brand would reignite inward investment to Wales?
I think that—[Interruption.] The personal remarks from a sedentary position have put me off my stride temporarily, even though they were not about me. My hon. Friend is absolutely right that branding is exceedingly important. There is no doubt in the UKTI report by the Welsh Affairs Committee that the WDA was a great brand for Wales that was well known across the world. I know that many people would like to bring it back. I think that is worth considering, although perhaps in another form. There is no doubt that branding is an important aspect when marketing Wales.
I join the Secretary of State in marking St David’s day. Will she join me in marking Wales’s magnificent triple crown victory over England on Saturday? I am sure she will have no trouble in doing so.
Since coming to office, how much private sector inward investment have the Secretary of State and her Government helped to bring to Wales?
What a magnificent victory that was. It brought a tear to a girl’s eye to see the team doing so well. As far as the match on Sunday goes, Cardiff were robbed and they played very well.
Inward investment and that side of business life are devolved to the Labour Welsh Assembly Government, as the right hon. Gentleman should know, given that he was an architect of the legislation. Since coming into government, I have met delegations from Taiwan, China, Turkey, Japan and Russia to promote Wales as an investment decision. Indeed, I launched the first ever trade mission of Welsh businesses to Bangladesh, led by the Wales Bangladesh chamber of commerce. I stress to the right hon. Gentleman that there needs to be a partnership between the UK Government and the Welsh Government because when making inward investment decisions companies look at the UK as a whole. We need to give them reasons to go to Wales.
The Secretary of State’s replies are immensely courteous, but I am afraid that they are a bit long.
I thank the Secretary of State for her reply, but remind her that in the 15 months since the Government spending review, the UK economy has grown by a miserable 0.2%—15 times less over the same period than the Office for Budget Responsibility’s 3% growth prediction in June 2010 after Labour left office. That collapse has massively damaged inward investment and jobs in Wales. Is it not high time that the Government changed course and followed the lead of the Labour Welsh Government with their Jobs Growth Wales scheme, which provides jobs for 4,000 young people in Wales? Where the Tories are hammering Wales, Labour is standing up for Wales.
I have to say that I will take no lessons from the right hon. Gentleman, particularly given that, since we came into government, we are investing £1 billion in electrifying the great western main line and putting £60 million into broadband. It is important that both Governments work together. If the First Minister goes on a business delegation and brings back business to Wales I will be delighted, but I think that we should work together—and, for the right hon. Gentleman’s information, we will be sticking to plan A.
Feed-in Tariffs
2. What assessment she has made of the effect of changes to feed-in tariffs on the Welsh economy. (96368)
We are continuing to consult and engage with the solar industry on changes to the feed-in tariff scheme and our assessments are ongoing. There are several key innovative businesses in the solar industry in Wales and we are committed to ensuring that they have a prosperous future.
According to the Department of Energy and Climate Change’s own figures, the industry is likely to shrink by a third, which means 5,000 jobs, in 2012 as a direct result of Government policies that the Under-Secretary has supported. How many of those jobs will be lost in Wales? Will he put his hand up and say that it has been a hash from start to finish?
I would certainly say that it was a hash at its inception, because the scheme that the Government of which the right hon. Gentleman was a member put in place was poorly designed and lacked the flexibility to respond to changes in the cost of installing PV and in the price of electricity. The measures that the Government are now putting in place in response to the recent consultation will provide consumers with a proper rate of return, of the sort that was originally envisaged.
Does my hon. Friend agree that the important thing is that there is a fair, not an excessive, return? As a result of that, Italy, France and, in the past week, Germany have significantly changed the tariffs, as the Government have endeavoured to do in the UK.
Yes, of course, and that underlines the fact that the scheme was poorly designed from the start. The Government’s proposals will provide a fair rate of return for investors.
But this retroactive policy has shattered business confidence in Wales. We are set for advances in the green economy, but who will invest when moneys can be wiped out at the mere flick of a pen in Whitehall? It is simply not good enough, and the Under-Secretary should realise that we are considering a key industry in Wales.
The right hon. Gentleman’s criticism would be more properly directed at the previous Government. The measures that the Government have now put in place will ensure stability in the industry and a fair rate of return for investors, and restore confidence to manufacturers.
I hear what the Under-Secretary says, but can he guarantee that this sort of mess will not happen again and that we can further develop green technology in Wales, where we are well placed to do that, in my constituency and throughout Wales? We need to develop those industries, so will he assure the House that we will not again have this kind of mess, which undermines confidence in the whole sector?
I agree with the right hon. Gentleman that the sector is extremely important to the Welsh economy, but I am afraid that, as ever, it has been left to the Conservative party to clear up Labour’s mess.
Given the feed-in tariffs fiasco and this week’s news that big investors in wind energy are threatening to take millions of pounds worth of green jobs abroad because they are losing patience over the Government’s shilly-shallying about renewables policy, how will the Under-Secretary convince companies to invest in the installation and manufacture of renewable energy equipment in Wales, securing much-needed jobs and reducing our dependence on ever costlier imported gas and oil?
The Government’s response to the consultation does just that: it provides a sustainable framework for the industry to go ahead and for investors to have a proper rate of return.
The People’s Rail
3. If she will discuss with ministerial colleagues the potential benefits of Wales being the test bed of the People’s Rail revised governance proposals; and if she will make a statement. (96371)
My right hon. Friend the Secretary of State has regular discussions with my right hon. Friend the Secretary of State for Transport about a range of transport issues that affect Wales. I am aware that the right hon. Gentleman spoke to my colleague the Minister of State for Transport only recently.
I am sure the Minister recognises that the Welsh Government—led by Carwyn Jones, and including Carl Sargeant as the Minister with responsibility for local government and transport—are showing a capacity for innovation and for bringing co-operative principles to bear. Would it not be a good idea to support the Co-operative party’s idea of the People’s Rail, so that railway services in and around Wales are accountable to the travelling public? Will the Minister support that idea?
The People’s Rail proposals are a helpful contribution to the continuing debate on how we improve our transport infrastructure—I believe they were first floated some four years ago when the Labour party was in power. The Government are currently considering our response to the McNulty review, which has identified ways in which to make the railways more efficient and affordable in the longer term.
Rather than setting up a consumer mutual, which raises concerns about accountability to all the people of Wales, will the Government consider the utility of transferring responsibility for all railways in Wales to the directly democratic body, namely the Welsh Government and Assembly?
That is not currently on the agenda, but no doubt the hon. Gentleman will make his representations to the Silk commission.
Burdens on Business
4. What recent discussions she has had with (a) ministerial colleagues and (b) others on measures to reduce administrative burdens for businesses in Wales. (96373)
6. What recent discussions she has had with (a) ministerial colleagues and (b) others on measures to reduce administrative burdens for businesses in Wales. (96375)
I have regular discussions with ministerial colleagues, the First Minister and other organisations on reducing the regulatory burden on businesses and the public in Wales.
Does the Secretary of State agree that although some decisions on business regulations are devolved, it is vital that the Welsh Government do not introduce any measures that are seen as a disincentive to invest in Wales?
My hon. Friend is absolutely right. The Government—whether the UK or Welsh Government—must be careful to send signals to business that we are on its side. We must not place any more barriers in the way of businesses creating jobs in Wales, which is why I was particularly disappointed when the First Minister supported the extra financial transactions tax. I am sure the financial services industry in Wales will have been daunted by that.
The UK Government are scrapping new regulations that would have cost businesses more than £350 million a year and are radically reforming the planning system in England. Many such decisions are devolved to the Welsh Government, but would my right hon. Friend like Labour Ministers in Cardiff to follow suit?
Yes. We are aiming to be the most business-friendly Government in history. By scrapping new regulations and with the red tape challenge, we have thrown down the gauntlet to all those organisations that put barriers in the way of business. I wrote to the First Minister about that some time ago—I am still waiting for his response, but I am sure he would share my sentiments that we need to encourage and not stifle business.
At a time when unemployment is at a 17-year high and more people than ever are forced into short-term work, is the Government’s decision to withdraw working tax benefits from low-paid, part-time workers an example of reducing administrative burdens, or is it simply an example of the Government kicking someone after they have thrown them on the ground?
I hope the hon. Gentleman has noticed that in creating the most competitive tax regime in the G20, which is the aim of the Treasury and this Government, we have also taken the lowest-paid out of tax. That will make a great difference to families and individuals across the UK, including in Wales.
But John Longworth, the director general of the British Chambers of Commerce, says that businesses tell him that they are still not feeling the burden of regulation lifting. Will the Secretary of State listen to business and confirm that the Cabinet was yesterday lambasted by the Chancellor of the Exchequer for not achieving satisfactory growth?
Right from the beginning when I was appointed Secretary of State for Wales, I set up a business advisory group so that I could listen directly to the concerns of business and industry. I hold regular meetings with that group, and as recently as this week I met the new chief executive of the CBI Wales. I certainly listen to what businesses are saying, as do this Government.
Funding Reductions (Women)
5. What assessment she has made of the effects of Government funding reductions on women in Wales. (96374)
We want to put women at the heart of our economic future. Although we have had to make difficult decisions, we are ensuring that the reductions made are shared fairly, while still protecting the most vulnerable in society.
Not only are Welsh women being hit particularly hard by the cuts but, as my hon. Friend the Member for Swansea West (Geraint Davies) said, on April 6 more than 9,000 families in Wales will discover that they will be hit by a change to working tax credits that could mean the loss of up to £3,800 a year unless they increase their hours. Does the Secretary of State have any comprehension of how hard it will be for those families to increase their hours, especially in retail, and what is she doing to fight their corner?
As the hon. Lady knows, the Government’s top priority is an economic recovery that provides jobs for everybody, including women. In difficult times, the Government have been helping families with the cost of living. For example, we have been freezing council tax, while the Welsh Labour Government have refused to implement a similar policy in Wales, and extending free health care and child care. We have increased that entitlement in England. I challenge Labour, in power in Wales, to match that record.
Many of the claims made about the effect on women of the reform of the welfare state in Wales have unfortunately been repeated in reports published yesterday by Cuts Watch Wales which, despite making claims about the effect on Wales of changes to the welfare system, state that there is no evidence to back up those claims. Does the Secretary of State agree that it is unfortunate that many public sector organisations, supported by the taxpayer, have agreed to be mouthpieces for Labour party propaganda on this issue?
I always condemn organisations funded by the taxpayer being propaganda mouthpieces for the Labour party, so I agree wholeheartedly with my hon. Friend. He must remember that the Government are providing flexible parental leave, working with employers to end the travesty of the gender pay gap, establishing a women’s business council and providing enterprise mentors to help more women to start their own businesses. We have a proud record on women. [Interruption.] And as my right hon. Friend the Minister for Women and Equalities has just joined us on the Front Bench, I would like to offer her my congratulations on her work on this front.
Public Service Delivery
7. What recent discussions she has had with (a) ministerial colleagues and (b) others on the delivery of public services in Wales. (96376)
My right hon. Friend the Secretary of State and I have regular discussions with ministerial colleagues and Welsh Government Ministers to discuss a wide range of matters, including public services in Wales.
Given the reports of patients in Wales crossing the border for better health care in England, does my hon. Friend agree that the NHS in Wales is in need of reform and deserves proper funding as in England?
Yes indeed. The Government are seeking in England to create an NHS that is fit for the 21st century and that gives greater discretion to professionals and choice to patients. By contrast, Wales increasingly has a one-size-fits-all health service that is falling behind the rest of the country.
One of the key public services in Wales is housing, but a constituent who came to my surgery last week is in work and works a full week but unfortunately is homeless. Were he to resign from his job, the local authority would be required to find him a home, and it would be paid for by the taxpayer. He does not want to do that. What will the Government do to end the manifest unfairness whereby somebody who is in work and paying Child Support Agency fees can still be homeless?
I am sure that the hon. Gentleman, as the constituency MP, is making appropriate representations to the Welsh Assembly Government, who are responsible for housing in Wales.
Another area of public service delivery is the additional £350 million for child care tax credits that the coalition Government are delivering. What difference does the Minister think that will make to working mothers and mothers trying to get into work?
This is currently a matter for discussion between the Welsh Assembly Government and the relevant Whitehall Department, and those discussions continue.
St David’s Day
8. What plans her Department has to mark St David’s day. (96377)
Tonight my right hon. Friend the Prime Minister is holding a reception for St David’s day. Tomorrow the Welsh flag will be flying over No. 10, and I will be attending the Back-Bench St David’s day debate and welcoming Welsh children from the Dreams and Wishes charity to the House of Commons and Gwydyr house. Tomorrow I will also be attending a St David’s day dinner in London and a church service in the Crypt, at St Mary Undercroft. I presented the Prime Minister with daffodils from the national botanic garden of Wales yesterday, and Gwydyr house is full of daffodils.
Almost enough material for an Adjournment debate.
This St David’s day will be tinged with some sadness, as Wales plays a memorial match in my constituency tonight in memory of Gary Speed, the Wales manager who died so tragically at the age of 42. Money will be raised for a charity called CALM—the Campaign Against Living Miserably—to help to prevent suicide among young men. Will the Secretary of State hold a collection in support of that charity at her St David’s day event?
I hope that the memorial match in the memory of Gary Speed goes extremely well and that a lot of money is raised for the charity. In answer to the hon. Gentleman’s question, I will come back to him and let him know, because I would like to ask the people who work in the Wales Office. We are having a charity called Dreams and Wishes come in on St David’s day tomorrow. That is what we are focusing on, but I will see what I can do for the hon. Gentleman. [Interruption.]
Order. We could do with a bit of quiet, both out of respect for St David’s day and in order to hear the Chairman of the Select Committee on Welsh Affairs.
I wonder whether the Minister would consider marking St David’s day by allowing patients to opt out of the NHS in Wales and instead enjoy the lower waiting lists, lower infection rates and better funding that are the hallmark of the NHS in Conservative-run England.
I am grateful to my hon. Friend for reminding us, on the eve of St David’s day, of the differences that are arising because of Labour Government policies in Wales. I am sure that his question will be heard by many people across Wales. I hope that the Welsh Labour Government will emulate our reforms and produce a first-class health service in Wales for all our citizens.
High Speed 2
9. What discussions she has had on Barnett consequentials to Wales for High Speed 2. (96378)
My right hon. Friend the Secretary of State and I have had recent discussions with ministerial colleagues in Her Majesty’s Treasury on a range of issues, including funding for Wales.
HS2 is clearly an England-only project, yet the Chief Secretary to the Treasury said last week in answer to a question that I had tabled that Barnett consequentials would be decided after “budgeting and funding arrangements” had been completed. Will the Minister ensure that Wales does not lose out on the £1.9 billion that it should receive as a result of HS2, by securing guarantees that the project will be funded via a stream that results in Barnett consequentials? [Interruption.]
I hope the Minister caught the thrust of that—the Prime Minister was momentarily troubled by some sort of insect.
I did get the thrust of that, Mr Speaker, and there might be some force in the hon. Gentleman’s argument were it not for the fact that the rail network in Wales is not a devolved issue. As such, there is no force in his argument whatever.
Crime
10. What recent discussions she has had with the Secretary of State for the Home Department on crime levels in Wales. (96379)
My right hon. Friend the Secretary of State and I have regular discussions with Home Office Ministers on a range of issues relating to crime in Wales.
We have already lost 40 police officers in Gwent. Does the Minister believe that this cut in police numbers will help or hinder the fight against crime?
I visited Gwent police last week, and I was delighted to see that the most recent crime figures show an 11% reduction in crime in that force area. One might have thought that, rather than talking Gwent police down, the hon. Gentleman would offer the force some support.
Does the Minister agree that policing in Wales will be more effective and more accountable following the election of commissioners in November?
Yes I do. I believe that, for the first time, some democratic accountability will be introduced into the policing process in Wales and throughout the United Kingdom.
Tourism
11. What recent discussions she has had with (a) ministerial colleagues and (b) others on the promotion of tourism in Wales. (96380)
As this is Welsh tourism week, I have been out on visits. I also have regular discussions with ministerial colleagues and others on the promotion of tourism in Wales. Tourism is primarily a devolved matter for the Welsh Government but, as usual, we are keen to work with them to promote Wales internationally. [Interruption.]
Order. The Secretary of State’s answers can scarcely be heard, and that is simply not fair. Let us have a bit of order for Mr Mosley.
Thank you, Mr Speaker.
There are huge opportunities for boosting tourism in north Wales by working with the beautiful, historic border town of Chester. Has my right hon. Friend had any discussions with the Welsh Assembly Government to encourage the joint marketing of our tourism gems on both sides of the Anglo-Welsh border?
I will certainly ensure that my hon. Friend’s request is on the agenda at my next meeting with the First Minister. I also hope that many people visiting this country, particularly for the Olympic games, will take the opportunity to visit the many attractions on both sides of the border, but especially in Wales.
What more could be done to capture the Irish tourist market in Wales, especially north Wales?
As the hon. Gentleman knows, that is the responsibility of the Labour Welsh Government, but I will certainly ensure that that matter is brought to the attention of Irish Ministers in my conversations with them.