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Inward Investment

Volume 617: debated on Wednesday 30 November 2016

Wales is an attractive destination for overseas investment, and the UK Government remain committed to providing certainty and stability for businesses in Wales. Our country has a tremendous opportunity to forge stronger relations with international partners. I am passionate about selling Wales to the world and continuing to increase global investment in Wales.

Does my hon. Friend agree that recent announcements of investment in Wales, such as the F-35 global repair and maintenance hub in north Wales, represent a vote of confidence in the UK’s economy as a whole?

I could not agree more. Such investment is welcome, and I pay tribute to the Secretary of State for Defence for his part in ensuring that that investment came to north Wales. North-east Wales is an engineering powerhouse in the UK economy, and the investment in the F-35 project is welcome and further enhances engineering opportunities for young people in north-east Wales.

At the beginning of this year, FieldMaster Tractors Ltd, a tractor assembly company in my constituency, signed a joint venture agreement with Longhua, a Chinese company, that would have created 40 jobs in my constituency with aims of expanding. Last week, the owner received notification from China that the deal was off due to uncertainty about our future trading relationship with the European Union. Does the Minister recognise that the UK Government’s dithering over Wales’s future relationship with the single market and the customs union is costing jobs now?

I am disappointed to hear that news and would be more than happy to discuss it with the hon. Gentleman—any loss of investment in Wales is to be regretted. He is wrong, however, to talk about dithering. The Government are clear that we want strong trade relations with the European Union and with the rest of the world. Any Chinese investor looking at the UK knows that this country is friendly to investment from all parts of the globe.

13. Will my hon. Friend update the House on the discussions that are taking place to bring inward investment to Wales and to create more jobs and opportunities for young and old alike, and to allow new firms to develop in Wales? (907491)

I agree with my hon. Friend; investment in Wales is most welcome. We need to diversify the Welsh economy. Manufacturing jobs in Wales have increased and the engineering sector is second to none in the United Kingdom. That is based on attracting inward investment. On a recent visit to Deeside, I saw again how Airbus is acting as a catalyst for small business development in north-east Wales. We need a combination of inward investment and home-grown companies that are able to build on the expertise provided by companies such as Airbus.

Some businesses may not invest inwardly in Wales because they would have to pay two apprenticeship levies: the UK Government levy and the Construction Industry Training Board levy. Under the Barnett formula, that will not result in extra funding for Welsh apprenticeships. Will the Minister reassure potential investors that they will be able to claim all levies for training and will be able to use the money for workforce development with local further education providers?

I am surprised to hear that question from the hon. Lady; the apprenticeship levy is important, but the settlement between Her Majesty’s Treasury and the Welsh Government has been welcomed by the latter as both fair and comprehensive. It is therefore essential that she and other Members call on the Welsh Government to make sure that the money allocated through the apprenticeship levy is spent where it is needed.

Given that the UK Government and, in particular, senior Ministers are currently doing their best to offend the international community, it falls to Wales and the Welsh Government to promote inward investment. So will the Minister join me in congratulating the Welsh Government on the role they have played in promoting Wales and securing the highest level of inward investment on record? Furthermore, what support will he give to ensure that this success is sustained following the UK’s exit from the European Union?

I thank the hon. Gentleman for the question. It is important to state that the relationship between the Welsh Government and the UK Government on this issue is very productive. I recently visited Wales with a Minister for International Trade, and the Secretary of State for International Trade will be in Wales on Friday. We work constructively with the Welsh Government to ensure that we sell Wales and the United Kingdom as a good place to do business. We have a strong relationship, which the hon. Gentleman should welcome.