1. What recent discussions he has had with Ministers in the Welsh Government on the provision of free child care places for three and four-year-olds in Wales. (906353)

Support with high-quality flexible child care is key to enabling parents to stay in the work force and gain financial stability for their families. The UK Government are increasing the provision of tax-free child care from next year; the Welsh Government need to do their part in supporting working families in Wales.

Parents in Cardiff complain that they cannot access their free child care entitlement. They can only get a place if they apply for three hours a day, five days a week at a state-run nursery school, which is useless if they work. Given that that means that parents in Wales are worse off than those in England, will the Minister speak to Assembly Ministers to ensure that parents can access their entitlement to free child care places in a way that suits them and not the Labour council?

I pay tribute to the hon. Lady for her work in this area in a number of roles in Parliament. The UK Government have pressed authorities in England to be as flexible as possible and have structured their policies around flexibility to enable more people to get into work and to manage their daily lives better. I will happily pursue the matter with the Welsh Government on her behalf.

We have heard about problems in Cardiff, but of course there are problems with good and affordable child care throughout Wales. For example, in rural areas there is sometimes a 200% difference in the cost from one local authority to the next. Will the Minister do his best to ensure that the Welsh Government access funds, if they exist, for that purpose and that there is a proper dialogue on this subject?

The right hon. Gentleman makes an important point about the variation in child care costs. Stability has finally come to the marketplace. The Government’s £2,000 tax-free child care account will create greater flexibility, provide more choice to parents and hopefully contribute to driving down costs.

That is a step forward, but the Minister will be aware that good, affordable child care is key to economic development. He is probably also aware that in the UK we pay far more for child care than most other OECD countries—40.9% of the average wage compared with 18%. In Sweden, by contrast, the figure is 7.1%. Does he think that we have anything to learn from the Nordic countries in that regard?

It is important that we learn from wherever good practice is in place. The greater choice will help to drive down costs, but it is important that we provide the right level of care, and the quality of care is important. I have no doubt that the stronger role that parents have to play in exercising that choice will also drive up the quality of care.

2. What discussions he is having with the Welsh Government on waiting times for cross-border health treatment in Montgomeryshire and Shropshire. (906354)

The performance of the Welsh health service is the most pressing issue for the people of Wales at this time. My ministerial colleagues and I regularly raise concerns with the Welsh Government, including on the issue of cross-border services. It is essential that all patients, wherever they live, can access the very best health care that meets their needs.

Does my right hon. Friend agree that the Welsh Government should follow the UK Government’s example of commitment to the NHS by using the £70 million boost to its budget, which came about as a consequence of increased spending on health in England, on the Welsh NHS?

Decisions on how the Welsh Government use Barnett consequentials are a matter for them, but it is true that a great many people in Wales would be baffled, bemused and hugely disappointed if Welsh Ministers chose not to use every single penny of the £70 million that we have made available to them by protecting and increasing NHS budgets here at Westminster.

3. What assessment he has made of the level of infrastructure investment in Wales since 2010. (906355)

4. What recent discussions he has had with the Welsh Government on investment in transport infrastructure in Wales. (906356)

5. What steps he is taking to improve transport infrastructure links between Wales and England. (906357)

For too long, Wales has suffered from under-investment in infrastructure, so I am proud to be part of a Government who are putting that right. By working closely with the Welsh Government and providing additional economic resources, we have been able to set out a long-term vision for how first-class infrastructure will make Wales a more attractive place in which to invest, benefiting the people of Wales for generations to come.

I thank my right hon. Friend for his answer and commend him on his work in securing the valley lines electrification. Does he agree that this project will have a transformative effect on those communities that were often left behind by previous Labour Governments?

I thank my hon. Friend for his question and his kind remarks. He is absolutely right. It was precisely because we did not want to leave those valley communities behind that we worked so hard with the Welsh Government to secure the full electrification package, electrifying the great western line all the way through to Swansea, plus electrifying those valley lines, which, as he says, will have a transformative economic and social impact for many years to come.

The Welsh Government have published figures on proposed roads expenditure showing that spending per head of population in south-west Wales will be £89, whereas the figure will be £815 for south-east Wales. Carmarthenshire, Ceredigion and Swansea will not have a single penny spent on roads, which means that there will be no money for relief roads for Llandeilo, Ammanford and Pencader in my constituency, and nothing for upgrades to the link between Newcastle Emlyn and Carmarthen. Does the stitch up between the UK Government and the Welsh Government to spend all Wales’s new borrowing capacity on a new M4 relief road not mean that there will be no transport infrastructure for the rest of Wales?

With respect to the hon. Gentleman, he has got this wrong. A Plaid Cymru former Transport Minister in the Assembly championed the upgrade of the M4, but could not achieve it, because the money was not available. We are providing the resources for that upgrade. That does not mean that no other project can happen throughout Wales, however, and I agree with the hon. Gentleman that we want more infrastructure investment in west Wales; we share that objective.

Does the Secretary of State agree that the Government’s investment in redoubling the Stroud to Swindon railway line, plus the promised investment in the A417 roundabout, add up to much improved links between the midlands and north Wales, which will be excellent for trade, manufacturing and tourism?

My hon. Friend makes his point extremely well. There is a broader point: infrastructure investment not necessarily inside Wales, but in border areas, benefits people and businesses across Wales. We should not be insular when considering infrastructure investment throughout the UK because it often delivers real benefits to all parts of Wales.

Tidal Lagoon Power in my constituency is mentioned in the national infrastructure plan. Will the Secretary of State join me in congratulating that important company on how it has worked with determination and grit to get the project through?

I echo the sentiments of the hon. Lady, who is a strong supporter of this important project. The quality of that company’s management, vision and business plan was precisely why I wanted the project to be included in the national infrastructure plan. It is also why I have been working hard with colleagues in the Treasury and the Department of Energy and Climate Change to get this potentially strategic project included in our long-term infrastructure plans.

In 2009 I managed to convince my right hon. Friend the Member for Neath (Mr Hain) to allow Denbighshire and Conwy into the objective 1 bid. Since then, those two counties have received about £500 million of EU funding. Will the Secretary of State congratulate the EU on that funding and recognise the danger to Wales of our pulling out of the EU?

The biggest danger to Wales, including north Wales, would be to abandon our clear long-term economic plan, which I know Labour Members are calling for. When I spent two days in north Wales on a business tour last week, I visited many Labour Members’ constituencies and saw just how dynamic the private sector is. Businesses in that sector are leading the economic recovery, so they are the ones that we should be saluting.

I commend my right hon. Friend on his commitment to the M4 relief road. The Severn bridge will link on to that relief road, so will he consider the importance of having a plan for when it returns to public ownership in approximately 2018?

My hon. Friend talks about an important issue that has been raised by Members on both sides of the House in recent months. I commend his work personally and that of his Select Committee on examining the impact of Severn bridge tolls on businesses and consumers in Wales. I share his concerns about the levels of the tolls. I want a long-term plan in place, so I look forward to discussing his ideas with him in more detail.

The Secretary of State says that his Government are investing in the electrification of the railways and building a prison, and now he talks about the tidal lagoon, but is not the reality that they have not yet spent a single penny on any of those projects? They have not laid a brick or a yard of electric rail. In fact, the situation is worse, because his Government have cut the Welsh capital budget by a quarter, and no amount of jam tomorrow can sweeten that unpalatable truth.

I am genuinely bemused by the hon. Lady’s question. Let us just remind ourselves that under the Labour Government no work was done to improve the M4, and not a single mile of railway line was electrified in Wales. We are cracking on with a long-term plan for infrastructure investment, and I am very proud to be part of a Government who are doing that.

I very much welcome what the Secretary of State said about electrification in south Wales, but will he turn his sights to the position in west Wales? Is he prepared to meet a delegation from the Traws Link Cymru group, which is campaigning to reopen the Aberystwyth to Carmarthen line? That would benefit our economy immeasurably and open up our part of the world generally. Is he prepared to push that agenda forward?

My hon. Friend is a strong voice for improving all transport connections in west and mid-Wales. We are seeing the largest investment in our railway infrastructure since Victorian times, and I want Wales to get the maximum benefit from that. I would very much welcome a meeting with the group that he has mentioned so that we can discuss further how we can make sure that west and mid-Wales benefit from rail infrastructure investment as much as anywhere else.

6. What discussions he has had with the Secretary of State for Transport on cross-border rail services. (906358)

The Wales Office has worked closely with the Department for Transport and the Welsh Government to resolve the dispute over funding for rail electrification. Electrification of the south Wales main line will bring significant journey time savings, an increase in capacity and a much improved passenger experience.

My constituents who use commuter services to places such as Bristol are increasingly frustrated by overcrowding and lack of capacity. Will the Minister make the point to the Department for Transport that the operator of the new First Great Western franchise must be able to meet demand for such services now, and anticipate future demand, which will only grow?

The hon. Lady has already made that important point to my right hon. Friend the Secretary of State for Wales. The Secretary of State for Transport has set a minimum service requirement based on the current level of services between south Wales and London, and I have no doubt but that the hon. Lady will be a feisty champion for ensuring that those local services remain.

I congratulate the Front-Bench team on securing great investment in the railways, particularly for cross-border services between England and Wales. They know that I have long supported improvement in those services. Will Ministers tell me what discussions they have had with either the Treasury or the Department for Transport on the possibility of Barnettising the investment in High Speed 2? That would make a great difference to investment in Wales.

I pay tribute to my right hon. Friend for the role she played at the Wales Office, which contributed to early negotiations on the electrification of the railways. Of course, HS2 is a UK strategic project and therefore will not be Barnettised.

What is missing from this failed economic plan is any rail strategy that deals with freight. The main corridor from the Republic of Ireland to Wales and England comes through north Wales. Will the Minister press the Treasury to ensure that we alleviate the problems on our roads, not by building motorways in marginals, but by building freight lines across England and Wales?

The hon. Gentleman makes an important point. Early in the new year, we plan a transport summit in north-east Wales to highlight businesses’ needs, and to ensure that business has the opportunity to make its case for electrification, so that the electrification taskforce of my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), and the recommendations made to the Secretary of State, can be taken into account. Freight is of course an important part of that.

Although the south Wales to London line always attracts a great deal of publicity and concern in this Chamber, the Minister should not forget the importance of the Birmingham to Machynlleth line, which is fragile and often single track. Will the Government maintain their position that the line should, wherever possible, always be open?

I am grateful to my hon. Friend for his persistent interest in these sorts of matters in Wales. This is an important issue, not only for the Wales Office but for the Department for Transport. It is a subject in which the Welsh Government will also want to show an interest.

In all of this, things seem to have gone a little bit quiet on the issue of north Wales electrification. Will the Minister update the House on his plans to ensure that it is an objective that he will seek to achieve?

On the contrary, things have not gone quiet on north Wales electrification. My right hon. Friend the Secretary of State for Wales was in north-east and north-west Wales last week, championing the need for business to grow and make its case, so that when the Secretary of State for Transport makes his final judgments on the next round of investment, north Wales is at the forefront of his mind.

The Silk commission has proposed devolving the Wales and Borders rail franchise to the Welsh Assembly. That franchise includes services from Chester to Manchester, Chester to Warrington and Chester to Crewe. What action is my hon. Friend taking to make sure that services in England are not devolved to the Welsh Assembly?

The devolution of the electrification of the franchise is part of the electrification decisions that were taken for the valley lines and I am sure my hon. Friend will want to make a case for services that start and finish in England. The joint agreement between the Department for Transport and the Welsh Government continues, and my hon. Friend will no doubt want to make his views known.

7. What assessment he has made of the reasons for changes in average weekly earnings in Wales in the last 12 months. (906359)

10. What assessment he has made of the reasons for changes in average weekly earnings in Wales in the last 12 months; and if he will make a statement. (906362)

Salary levels are not where we would like them to be, but over the past year the earnings gap between Wales and the average for the UK as a whole has narrowed. Since 2010, average earnings in Wales have increased by more than the UK average, and Wales has seen the second largest increase of all the English regions and devolved nations.

Caerphilly county borough council is clocking up a year as a living wage employer. Will the Minister follow its example and that of the Welsh Assembly by becoming a living wage employer at the Wales Office?

The Wales Office already pays above the living wage. That is an important part of our policy, but it is a matter for employers. The best solution is to deliver a long-term economic plan so that employers can pay the living wage where possible. The greater competition that we see in the work force will help to drive wages even further.

Average earnings in Flintshire fell again this year by 1.5%, in the Vale of Glamorgan by 1.3% and in Pembrokeshire by 5%. When will the Government own up to their terrible management of the economy and deliver for Welsh families?

That accusation about the management of the economy is not reflected in the fastest growing economy among the developed nations of the world, because this Government’s long-term economic plan is working. The hon. Gentleman talks of average increases in salary. The trends from 2010 to the present show that average weekly earnings in Wales have increased by 5%, compared with 3.9% across the whole of the UK.

Does my hon. Friend agree that the best way to increase average earnings in Wales and in constituencies such as Harlow is to cut council tax for low earners and freeze fuel duty and council tax, just as this Government have done?

My hon. Friend makes an important point. Whereas council tax in England has broadly been frozen, council tax in Wales has gone up by 13% in spite of additional funding being given to freeze it. If there was such a cost of living crisis as the Opposition claim, they would be pressing their colleagues in local authorities and in the Welsh Government to ensure that they do not increase council tax as they have.

Does the Tories’ much trumpeted economic plan not mean depressed earnings in Wales, generating lower taxes, and Government borrowing overshooting Labour’s planned target by more than £20 billion—the very deficit target luridly denounced by the Tories, who said it would bankrupt the country? Why does the Minister not apologise for this abysmal failure in the Government’s austerity strategy?

As the right hon. Gentleman was part of the previous Government, he should apologise for leaving Wales the poorest part of the United Kingdom. He should further apologise for the fact that wages fell at the sharpest rate between 2008 and 2009. The Government’s long-term economic plan is working for Wales, and wages are rising quicker in Wales than across the rest of the United Kingdom.

The Minister knows that low wages and poor jobs affect not just individuals and their families, but the public finances. Will he tell us what has happened to tax receipts and welfare spending in Wales since his Government came to power?

We will receive a statement from my right hon. Friend the Chancellor a little later which will cover the UK financial position, but I hope the hon. Gentleman, who is the shadow Secretary of State for Wales, will welcome the progress that the Government are making in reducing unemployment and in growing wages in Wales.

The Minister does not need to wait for the autumn statement, because the numbers are publicly available. Tax receipts in Wales have fallen by £2 billion since 2010, and benefit spending has gone up by £1.5 billion. That has piled an extra £6,000-worth of borrowing on every Welsh worker, and what have they got for it? They have got a twentyfold increase in food bank usage, the lowest wages in Wales and a cost of living crisis. The Tories have failed on the deficit, failed on the cost of living crisis, and they are failing in Wales once again.

The shadow Secretary of State has clearly got his facts wrong. The long-term economic plan is working for Wales. If there has been a reduction in tax receipts from Wales, it is because of our increase in the personal allowance, under which next year the average worker will pay less than £800 as a result, taking 155,000 people in Wales out of income tax altogether by next April.

8. What discussions he has had with the Secretary of State for Transport on when the electrification of the valleys railway line will be completed. (906360)

When I became Secretary of State, I made resolving the dispute over funding for the electrification project my No. 1 priority. I have had many discussions with my right hon. Friend the Secretary of State for Transport in recent weeks, and I am delighted that we have settled a deal between the Department for Transport and the Welsh Government to deliver that important project.

Has the Secretary of State considered improving the frequency of trains after electrification? Two or three trains an hour on the valleys line to Cardiff would be a massive boost to my constituents in Ebbw Vale, Llanhillith and the surrounding valley towns.

The hon. Gentleman makes an important point. There are frequency issues on those lines, but he must recognise that decisions on the frequency of services will need to be taken by Welsh Ministers, because we are devolving the franchise to the Welsh Government as part of the electrification deal.

Part of the valleys line package is a contribution by the UK Government to the capital costs involved. In principle, are the UK Government prepared to support capital investment in railways in north Wales?

I spent two days in north Wales meeting business leaders and local authorities to talk about how we can drive up the quality of infrastructure in north Wales, and I can tell the hon. Gentleman that we have a long-term plan that will deliver the improvements for infrastructure in south Wales and north Wales too. [Interruption.]

Order. Let us have a bit of quiet in the Chamber so that Mr Howell can raise the subject of the Newport investment summit.

9. What discussions he had with business leaders at the recent Newport investment summit. (906361)

The UK investment summit in Newport was another important opportunity to focus on all that is good about the Welsh economy at this time. I was proud to stand shoulder to shoulder with my right hon. Friend the Prime Minister, the First Minister of Wales and businesses in Wales to bang the drum for all that is great about our nation. During the summit I met numerous companies that are looking to invest or to expand their investment in Wales.

Did my right hon. Friend discuss with business leaders the fact that there were 79 foreign direct investment projects in Wales in 2013-14, the highest level in 24 years?

My hon. Friend is exactly right; there has been a sharp increase in inward investment in Wales. The important point to note about those projects is that they were all secured with the help of UK Trade & Investment and the UK Government.

13. Does the brilliant success of that second summit, following the NATO summit, not illustrate what a marvellous habitat Newport provides for international conferences —almost certainly the best in the United Kingdom? (906365)

I am delighted to see the hon. Gentleman stand up and champion business investment in south Wales. He is exactly right that Newport, and the Celtic Manor in particular, provide a superb venue for not only international leaders’ summits, but inward investment conferences. It will be a key player as we look to regenerate and improve the economy of south Wales.

15. Business leaders have welcomed the introduction of the employment allowance, which reduces employers’ national insurance bills by up to £2,000 per annum. It has been taken up by 1,200 businesses and charities in Brecon and Radnorshire, but it is estimated that nearly 1,000 of all employers have not applied. What can the Government do to encourage further uptake of that important concession? (906367)

My hon. Friend is right. The employment allowance has been a huge success for small businesses up and down Wales. There is a responsibility not just on Government but on all of us as Members of Parliament to champion that project and to tell businesses in our own constituencies how they can benefit from the allowance.

14. It is clear that the successful investment summit in Newport brought in overseas investors and created jobs as part of the long-term economic plan. Does the Secretary of State agree that we should have a northern powerhouse investment summit—and if they like, the north Welsh can come too? (906366)

I agree wholeheartedly with my hon. Friend. The northern powerhouse represents an exciting vision for economic and civic renewal in the north of England, and it poses huge opportunities and potential for north Wales too.

11. What recent discussions he has had on delivery of the online universal credit application process in the Welsh language. (906363)

I recently discussed the provision of Welsh language services for universal credit with the welfare reform Minister, Lord Freud, who confirmed that the Department for Work and Pensions is making good progress with the development of the universal credit digital service. A meeting is scheduled with the Welsh language commissioner in the new year to discuss Welsh language provision for the live service.

I recently met the team delivering the service, who are doing a good job under difficult circumstances. They told me that the Welsh language version will not be available until after the English language version is available. Will the Minister find out why that is, and when it will happen?

My right hon. Friend the Secretary of State for Wales was there only last week when this issue was discussed at the Jobcentre Plus. I have also raised it with the DWP Minister. We are meeting the Welsh language commissioner to ensure that we develop a service that is appropriate and applicable, and that grows with the growth of universal credit across the whole of Wales.