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Leaving the EU

Volume 617: debated on Wednesday 30 November 2016

6. What recent discussions he has had with key stakeholders on the potential effect of the UK leaving the EU on Wales. (907484)

10. What recent discussions he has had with key stakeholders on the potential effect of the UK leaving the EU on Wales. (907488)

Since the referendum in June, I have had discussions with a wide range of stakeholders across Wales, from the Wales Council for Voluntary Action, to the farming unions, the CBI Wales and the Institute of Directors in Wales, to hear their views on how to secure the best deal for Wales and the UK as we leave the EU. Those conversations are informing my discussions with Cabinet colleagues, as well as with the Welsh Government.

Does the Secretary of State agree that we should not just focus on businesses as we leave the EU? We should also consider the implications for the third sector, charities, local authorities and universities in Wales.

My hon. Friend makes an extremely important point. I have already talked about my warm relationship with the Welsh Government, but of course the UK Government should also have a warm relationship with universities, charity groups and environmental groups, as well as with businesses directly in Wales. The Welsh Government have an important part to play, but we also have a direct relationship with those key stakeholders.

Does my right hon. Friend recognise that there is more than one voice in Wales and not simply the voice of the Welsh Government, who still cannot accept that the majority of Welsh people voted to leave the European Union? We must therefore engage with all Welsh stakeholders and partners who are key to ensuring that Brexit will be a success for everyone in the UK.

My hon. Friend raises an important point. Of course we engage positively with the Welsh Government, and we will continue to do so. I have already had scores of meetings with key stakeholders in Wales. My hon. Friend the Under-Secretary of State for Wales was at the Royal Welsh Agricultural Society’s winter fair yesterday doing that very thing—engaging with Welsh farmers and with Welsh farming unions.

Given the uncertainty over the single market and the Prime Minister’s failure to raise steel when she met the Indian Government recently, what steps will the Secretary of State take in the near future when he meets trade unions representing the steel industry to discuss the impact of the loss of the single market?

I hope that the right hon. Gentleman will do all he can to instil confidence in our ambitions to gain the most open trading relationship possible. He rightly raises steel. I am sure that he will recognise that we are in a much stronger position now than we were back in March. That is a result of reduced energy costs for the sector of £109 million. We have changed the procurement rules, offered flexibility in environmental packages and implemented strong pan-EU anti-dumping measures, which will reduce the threats of imports by more than 90% in a whole range of sectors.

The success of the Welsh red meat sector has meant that £225 million has been ploughed back into some of the most fragile rural communities in Wales. In his meetings, has the Secretary of State heard that message, and will he push the case for access to the single market to protect those very communities?

Like the hon. Gentleman, I have a lot of confidence in the Welsh red meat sector. I am sure that our European nations do not want to go without our high-quality Welsh red meat. We are determined to support our farmers in gaining the most open trading relationship possible, so that European nations can continue to enjoy the quality of Welsh produce.

7. What assessment he has made of the potential effect of the UK exiting the EU on businesses and employees in Wales. (907485)

I recognise that many businesses in Wales have an important relationship with the EU, but, as a whole, Welsh businesses export more to countries outside the European Union. In leaving the EU, we will seek new opportunities for businesses across the UK, including in Wales, as we build on our strengths as an open, dynamic trading nation.

The Minister will know full well that he has not really answered my question. Can he tell us whether his officials have made any estimate of how many jobs in Wales will be lost if the UK leaves the single market and what he and his Government are planning to do about it?

I am somewhat disturbed by the hon. Lady’s comments. Time and again, I hear Opposition parties talking down the Welsh economy. I want to talk up the Welsh economy, as do the Welsh Government. As we start this process, we have fewer people out of work in Wales now than since 2010, and our economy is growing faster than many parts of the UK. She should be talking up Wales, not talking it down.

I am happy to hear the voice of North East Hampshire on question 7. Mr Jayawardena, get in there.

9. North Wales, which is home to the wings of the Airbus A380, has significant opportunities for trade with Europe and the rest of the world. Will my hon. Friend reassure the House that efforts will be dedicated to ensuring that north Wales and its northern powerhouse links will be trumpeted by this Government? (907487)

My hon. Friend is absolutely right. North Wales has a huge contribution to make in terms of employment not just in North Wales but throughout the UK. The Government’s emphasis on having a north Wales growth deal is dependent on linking north Wales to the northern powerhouse. To develop that link, I was pleased to visit north-east Wales and Chester recently with the Minister responsible for the northern powerhouse. There is an appetite in north-east Wales to work on a cross-border basis for the benefit of our local economies.

Will the Minister confirm the completion date of the rail electrification and all the work that needs to be done between Cardiff and Swansea, please?

My understanding is that the work is progressing well. Again, I highlight the contrast between the situation under this Government and the lack of investment in any railway infrastructure between 1997 and 2010.

What is the Minister going to do with preposterous suggestion that the priorities for future support for farmers in Wales should be decided on the basis of the UK, where there are many millionaire and billionaire farmers, rather than on the basis of Wales, where there are small farmers? Will he stand up for Welsh priorities, made in Wales for Welsh small farmers?

I was at the winter fair yesterday in discussions with farming unions and other interested parties in relation to the Welsh agricultural sector. The agricultural sector in Wales wants a settlement that will be good for the sector in Wales and good for the UK. We know that we can produce the best food in all the world, and we need to ensure that we have opportunities to sell it not only to the rest of the European Union but on a global basis. We are confident we can do that with support from this Government.