Wales The Secretary of State was asked— Foreign Business Investment Stuart Andrew (Pudsey) (Con) 1. What discussions she has had with ministerial colleagues and others on marketing Wales as a destination for foreign business investment. Karl MᶜCartney (Lincoln) (Con) 3. What discussions she has had with ministerial colleagues and others on marketing Wales as a destination for foreign business investment. The Secretary of State for Wales (Mrs Cheryl Gillan) I have regular discussions with ministerial colleagues and others on marketing Wales as a destination for foreign business investment. The recent Select Committee on Welsh Affairs report on inward investment in Wales highlighted a number of important issues, and we are committed to closer joint working with the Welsh Government to deliver more inward investment to Wales. Stuart Andrew I am grateful to my right hon. Friend for that answer. One of the best ways to improve foreign investment in Wales is for the UK and Welsh Governments to work more closely together. Does she regret the apparent unwillingness of the Welsh Business Minister to do just that? Mrs Gillan As the Welsh Affairs Committee has made clear in the inquiry into foreign direct investment, co-operation between both Governments is considered essential to marketing Wales and for potential investors. However, as economic development is devolved and led by the Labour Government in Wales, I share my hon. Friend’s disappointment that the Business Minister did not give evidence to the Committee. I hope that we can develop a more mature attitude, as FDI projects in Wales have diminished over the years and we need to get them back up, so that we are competing effectively. Karl MᶜCartney I thank my right hon. Friend for her earlier answer. Does she agree that it is right to explore investment opportunities in emerging markets? There are markets close to home, such as in the Commonwealth of Nations, which consists of 54 countries and has a population of 3.5 billion-plus, that also offer important investment potential. Mrs Gillan The Prime Minister himself has said that he wants “to link Britain up to the fastest growing parts of the world, because we need to trade and export our way out of our economic difficulties.” We inherited those from the previous Government. That is why I have taken such a tremendous interest in this area and why I am very pleased that we have now joined up UK Trade & Investment to the Welsh Government. We have offered at least one of UKTI’s investment advisers to work in the Welsh Government offices in Treforest and for there to be two-way secondees between UKTI and the Welsh Government. That is real progress and it shows that we can get our two Governments working together in the interests of Wales. Ann Clwyd (Cynon Valley) (Lab) As the Secretary of State knows, good air transport links are essential in attracting business investment to Wales. What discussions has she had with the First Minister and the Welsh Government about improving the links between Cardiff airport and the rest of the world? Mrs Gillan As the right hon. Lady knows, I have constant discussions with the First Minister and the Welsh Government, as does the Under-Secretary. We have certainly discussed the links and there has been some discussion of Cardiff airport. I am pleased to say that I have invited the owners of the airport to meet me shortly, because I have been concerned about some of the reports I have heard in the press. We should be trying to talk Cardiff airport up, not down. Nia Griffith (Llanelli) (Lab) I certainly welcome the announcement by the Labour Welsh Government that Tata Steel will invest £800 million in Wales, but as the Secretary of State will know Tata bosses have repeatedly said that the prices they have to pay for energy in the UK are simply not competitive when compared with what industry pays elsewhere. What discussions has she had with the Energy Secretary and energy companies to secure a better deal on energy prices for heavy industry to provide an incentive for companies such as Tata to invest in Wales? Mrs Gillan One of the first things I did when I was appointed was visit Tata Steel, and I took the Business Secretary, Vince Cable, with me to discuss energy prices. The hon. Lady should know that all the Departments have been focused on the energy-intensive industries because we want to ensure that there are good manufacturing jobs in the future, not just in Wales but elsewhere in the UK. I have read the press release from the Welsh Government and the First Minister and he says that he was told at a meeting in India that £800 million has been approved over the next five years for investment in Tata Steel in Wales. I look forward to seeing the detail, because it seems to be a general announcement at this stage without too much detail attached to it. Mr Speaker The Secretary of State was referring to the right hon. Member for Twickenham. We do not name people in this place. Budget (Welsh Assembly) Mark Tami (Alyn and Deeside) (Lab) 2. What assessment she has made of the effect of the Budget on the National Assembly for Wales; and if she will make a statement. The Parliamentary Under-Secretary of State for Wales (Mr David Jones) As a result of the Budget the Welsh Government will benefit from an additional £11.7 million over the spending review period. Consequently, they will have received nearly £500 million in additional funding since the spending review in 2010. Mark Tami The granny tax, the pasty tax and cutting the top rate of tax for the rich while shutting Remploy factories that give disabled people the dignity of work: those are the priorities of this Government. The caravan tax will hit thousands of hard-working families in Wales, particularly in north Wales. Will the Minister speak to the Chancellor and get him to scrap the caravan tax, rather than sitting on his hands like the hon. Member for Aberconwy (Guto Bebb) did the other evening? Mr Jones The hon. Gentleman should not get so aerated. The Government fully recognise the importance of the holiday and touring park sector to the Welsh tourism industry and to the economy of Wales as a whole. Her Majesty’s Revenue and Customs is consulting on the proposals, as he should know, and I hope he will play a part in that consultation, which closes on 18 May. Jonathan Evans (Cardiff North) (Con) Will my hon. Friend confirm that the Red Book reveals that although 14 Government Departments will see reductions in spending over the next four years, spending in Wales increases year on year despite the fact that the Welsh Assembly Government underspent by £385 million last year while cutting health spending in Wales? Mr Jones Absolutely. The reduction in the Welsh health budget is a matter of shame for the Welsh Assembly Government. I repeat that the Welsh Government will have had almost an additional £500 million since the spending review in 2010. Mr Peter Hain (Neath) (Lab) Is it fair that Welsh churches, charities, caravanners, pensioners and almost everybody else will pay more taxes so that millionaires can each pay £40,000 less? Mr Jones That is a very strange rhetorical question. The right hon. Gentleman will know that the reduction in the top rate of tax will not take effect until the end of the public spending freeze and it is quite interesting that the Government of whom he was a member did not see fit to increase the rate of tax until a matter of weeks before their last Budget. Mr Hain I am amazed that the hon. Gentleman is not ashamed of that impact on some of the most vulnerable in our society. Can we in Wales, through him, apologise to the Secretary of State? We used to think that she was all on her own at sea in the Cabinet, but clearly they are now all at sea together. The Budget omnishambles, Abu Qatada, petrol pump panic—at least Wales has a Labour Government to give us some protection from this Tory-Lib Dem incompetence. At least Wales can reject this disastrous Budget by voting Labour in the council elections next Thursday. Mr Jones I am still waiting for the question, Mr Speaker. Roger Williams (Brecon and Radnorshire) (LD) Does the Minister agree that with new law-making powers and a £15 billion budget, the Welsh Assembly Government have both the tools and the money to make a real and lasting difference in Wales? Mr Jones Yes, indeed. It is vital, too, that the Welsh Assembly Government work closely with the Government in Westminster for the good of the people of Wales. I very much hope that we will now see a far more joined-up approach taken by the Welsh Assembly Government in that regard. Enterprise Zones Nick Smith (Blaenau Gwent) (Lab) 4. What assessment she has made of the treatment of capital allowances in enterprise zones in Wales; and if she will make a statement. The Secretary of State for Wales (Mrs Cheryl Gillan) The Chancellor announced funding for enhanced capital allowances in the Deeside enterprise zone in the Budget in addition to the money already provided for enterprise zones in Wales. We are committed to looking at how we can provide these allowances elsewhere but the Welsh Government must develop strong, detailed and robust business cases. Nick Smith I thank the Secretary of State for her interest in the Blaenau Gwent enterprise zone. Plans for a motor industry complex there are now at a critical juncture. We need to know if capital allowances can be delivered or if other tax treatments are a better prospect. May I press her for a meeting between developers and the Chief Secretary to the Treasury, so that we can thrash out a solution? Mrs Gillan The hon. Gentleman has worked tirelessly for his constituency to develop these proposals for the Ebbw Vale enterprise zone, and I really do congratulate him on that. We have met on other occasions and I have written to him again today, saying that I am very willing to try to secure a meeting with the Chief Secretary to the Treasury, but without a business case the Treasury cannot make any decisions on further enhanced capital allowances. I urge the hon. Gentleman to discuss the subject with the Welsh Government as well as with our Government. Broadband Technology Mr Mark Williams (Ceredigion) (LD) 5. What discussions she has had with ministerial colleagues and others on funding for broadband technology in Wales. Bob Blackman (Harrow East) (Con) 8. What discussions she has had with ministerial colleagues and others on funding for broadband technology in Wales. The Parliamentary Under-Secretary of State for Wales (Mr David Jones) My right hon. Friend the Secretary of State has had, and continues to have, regular discussions with ministerial colleagues, Welsh Government Ministers and other interested parties on the funding of broadband technology in Wales. Mr Mark Williams I thank the Minister for that response and congratulate him on his part in securing £57 million for Wales and, of course, the broadband provision for Cardiff. However, on the roll-out of broadband in scattered rural areas, does the Minister share the frustrations of many in my constituency—small business men, and consumers trying to access their bank accounts—at the speed with which that is being delivered in Wales when compared with authorities such as Cornwall, which are speeding ahead? Mr Jones As my hon. Friend says, the Government have made available a total of £56.9 million to help bring superfast broadband to Wales. The Welsh Government are working with Broadband Delivery UK on how best to employ the funding, but we are indeed looking to the Welsh Government to make an announcement as to their contribution to speed up the process. I am sure, however, that my hon. Friend will be pleased with the announcement by BT last December that 33 rural communities will have access to faster broadband by this summer, including Aberystwyth. Hywel Williams (Arfon) (PC) The South Wales chamber of commerce has called for a more ambitious target for broadband speeds in Wales for 2015, at 50 megabits per second from the previous target of 30. What are the Government doing here, in conjunction with the Welsh Government, to achieve such a target, which could clearly be very beneficial for Welsh business? Mr Jones It would indeed be beneficial, and I am sure that the hon. Gentleman will recall that in the Budget a sum of £12 million was made available to help transform Cardiff into a super-connected city, which should result in speeds of between 60 and 100 megabits per second—plus, of course, wi-fi connectivity. Hywel Williams Cardiff is not Wales, although some people might be under that misapprehension. Countries such as Finland and Malta have introduced a universal service obligation on internet coverage and connections similar to that for the postal service, to ensure that everybody has equal access to the internet and its advantages, irrespective of location, be that rural or otherwise. Will the Government look into that, and do so in time for the next communications Bill—or perhaps it is something that the Welsh Government can do under the powers set out in part 4 of the Government of Wales Act 2006? Mr Jones I quite agree with the hon. Gentleman: Cardiff is not Wales, but he referred specifically to the South Wales chamber of commerce. Indeed, as he knows, it is the ambition of this Government to ensure that superfast broadband is rolled out throughout the United Kingdom by the end of this Parliament, and at the moment we are on track. Bob Blackman Broadband suppliers have shown a marked reluctance to invest in Wales. Does my hon. Friend agree that it is important that the people of Wales have the benefit of new technology, and that perhaps the Welsh Assembly might use some of this vast underspend to invest in Wales, so that everyone has the benefit of broadband? Mr Jones Yes, indeed. As I said in reply to the hon. Member for Ceredigion (Mr Williams), the Welsh Assembly Government are expected to contribute to the process. They are working well with BDUK, but we are waiting for their commitment in financial terms. Economic Growth Andrew Selous (South West Bedfordshire) (Con) 6. What recent discussions she has had with ministerial colleagues on encouraging economic growth in Wales. The Secretary of State for Wales (Mrs Cheryl Gillan) Economic growth is a key priority for this Government and I have regular discussions with ministerial colleagues on ways to encourage economic growth in Wales. Yesterday I met the business advisory group and heard directly from members how this Government’s growth policies are helping businesses in Wales to face the current economic challenges. Andrew Selous Does the Secretary of State agree that the fact that the recent Budget is taking 95,000 people out of tax altogether in Wales is a big boost for business in Wales, as more people will have greater spending power and find it worth their while to be in work? Mrs Gillan I agree entirely with my hon. Friend. It must be very good for those people whom we have taken out of tax altogether and the lower paid workers who will benefit from our tax changes, because it will put money directly back in their pockets rather better than the Welsh Labour Government down in Cardiff Bay, under whose auspices council tax has doubled in Wales. Jonathan Edwards (Carmarthen East and Dinefwr) (PC) The Budget included a clear framework for reducing localised pay in the public sector. Considering that there is a direct link between money in people’s pockets and spending in the local economy, how will depressing pay encourage economic growth in the poorest parts of the British state? Mrs Gillan When it comes to local pay, our aim is to create a more flexible labour market that is more responsive to the challenging economic conditions we currently face. We want to create more private sector growth and, as a consequence, wealth in Wales and across the UK. Alun Michael (Cardiff South and Penarth) (Lab/Co-op) If the Secretary of State thinks this Government are interested in growth, she is living in cloud cuckoo land. Is she not keeping up with today’s news that shows that the Chancellor’s obsessive intention of cutting too deep and too fast is taking us back into recession? Mrs Gillan No. I have to say that today’s news is disappointing but not totally unexpected. Britain cannot be immune to what is happening on our doorstep. For example, Italy, Holland, Ireland, Belgium and Portugal are already in recession. But let us remember that since the coalition took office in 2010, more than 630,000 private sector jobs have been created, more than outstripping job losses in the public sector, and private sector employment in Wales rose by 12,000 between quarter 3 in 2010 and quarter 3 in 2011. South Wales Valley Railways Huw Irranca-Davies (Ogmore) (Lab) 7. What recent progress has been made on electrification of the south Wales valley railways; and if she will make a statement. The Parliamentary Under-Secretary of State for Wales (Mr David Jones) My right hon. Friend and I are working with the Secretary of State for Transport and Welsh Ministers on the business case for electrification of the south Wales valley lines. We expect to make an announcement in the summer. Huw Irranca-Davies My hon. Friend the Member for Blaenau Gwent (Nick Smith) has the lovely Ebbw vale line. I live in the beautiful Llynfi valley and catch the Maesteg to Gloucester train via all points including Cardiff and Newport, a route which sometimes takes me through the delightful constituency of the hon. Member for Vale of Glamorgan (Alun Cairns). All these link even as far west as Swansea. We are all valleys people on valleys rail connections, so when considering electrification for south Wales and the valleys, will the Minister’s definition of south Wales be my definition—the definition of the people of south Wales—because when it comes to electrification, we are all in this together? Mr Jones Yes, indeed. We recognise the importance of the electrification of the south Wales valley lines to the economy of the Cardiff city region and wider. The Chancellor of the Exchequer singled out electrification of those lines as a key infrastructure priority in the Budget, and I was delighted that my right hon. Friend the Prime Minister confirmed his personal commitment to that when he visited Wales earlier this month. Rail Transport Albert Owen (Ynys Môn) (Lab) 9. What recent discussions she has had with the First Minister of Wales on developing rail transport in Wales. The Parliamentary Under-Secretary of State for Wales (Mr David Jones) My right hon. Friend has regular discussions with the First Minister about a range of transport issues that affect Wales, most recently last week. Albert Owen Has the Wales Office done a study of the impact of High Speed 2 on Wales, and has the Wales Office put the case for improving the lines west of Crewe and line speeds, as well as possible electrification, so that we can have a high-speed Wales? Mr Jones I share the hon. Gentleman’s concern about speeds on the north Wales coast line. The Wales Office discusses these matters regularly with the Department for Transport and will continue to do so. Karen Lumley (Redditch) (Con) What discussions has the Minister had with the European Parliament on trans-European network funding to enhance the railways? Mr Jones As we consider what methods to adopt to improve the funding regime for railway lines in Wales, we will certainly look carefully at the EU TEN network funding, which is available from the European Community. Mrs Siân C. James (Swansea East) (Lab) As we know, economic growth is one of the ways we can improve infrastructure in Wales, but to do so we need a modern railway, and that means electrification as far as Swansea. What impact assessment has been made of the effect on the commuter and holiday trade of rail electrification to Swansea? Mr Jones I commend the hon. Lady for her interest in this matter on behalf of her constituents and can assure her that we remain very interested in the electrification of the line and are working closely with the Welsh Assembly Government to develop the business case. [Interruption.] Mr Speaker Order. Far too many noisy private conversations are taking place. Let us have a bit of hush for Mr Robert Halfon. Fuel Prices Robert Halfon (Harlow) (Con) 10. What recent assessment she has made of the effect of petrol and diesel prices on the Welsh economy. The Parliamentary Under-Secretary of State for Wales (Mr David Jones) The Government recognise that businesses, individuals and families are struggling with the rising cost of fuel, particularly in rural areas. We have eased the burden on motorists by approximately £4.5 billion through the abolition of the fuel duty escalator and the introduction of the fair fuel stabiliser and by cutting fuel duty. Robert Halfon I welcome the Government’s cuts in fuel duty, but the market price of oil is still too high, partly because of oil speculation. The United States is bringing in tough penalties for price fixing and market manipulation. Will the Minister urge his Government colleagues to look at this and put pressure on the big oil firms to cut prices at the pumps? Mr Jones As I have said, the Government recognise the impact of the rising cost of fuel on people and businesses in Wales. However, it should be remembered that the duty increase that was expected to take place in January this year has been deferred to August and we have cancelled the inflation increase planned for August, which means that there will be just one inflation-only increase this year. Mr David Hanson (Delyn) (Lab) Can the Minister tell us the price of a litre of fuel this time last year and today, and is the rise anything to do with the VAT increase that he voted for? Mr Jones The price of a litre of fuel in my constituency—I assume the right hon. Gentleman means petrol—is approximately £1.40. I will be happy to write to him with the figure for last year. Aerospace Industry Gavin Williamson (South Staffordshire) (Con) 11. What recent discussions she has had with ministerial colleagues and others on the aerospace industry in Wales. The Secretary of State for Wales (Mrs Cheryl Gillan) I have regular discussions with ministerial colleagues and other organisations on a range of issues, including the aerospace industry in Wales. Gavin Williamson Does the Secretary of State agree that, while the UK Government have taken a lead in establishing enterprise zones, the onus is now on the Welsh Government to ensure that their enterprise zone for the aerospace industry in St Athan is a success? Mrs Gillan My hon. Friend is absolutely right. As far as enterprise zones are concerned, a great deal depends on what the Labour Welsh Government will do, because we have capital allowances for only one enterprise zone, which is already in Deeside. The enterprise zone to which he refers will be crucial to the UK and will secure work on the next generation of aircraft, because some 27,000 large aircraft, worth $3 trillion, will be needed over the next 20 years, around 7,000 new helicopters will be required within the next decade and there is a huge potential future market in unmanned air vehicles, and I want us to benefit from that demand in the aerospace business in Wales. Ian Lucas (Wrexham) (Lab) Is it not the case that the success of the UK aerospace industry is due to government and industry working together—[Interruption]—and that saying that business succeeds because government gets out of the way is arrant nonsense? Mrs Gillan Over this noise, Mr Speaker, I think the hon. Gentleman is suggesting that government should get out of the way of business. Indeed, that is exactly what this Government are doing, with the red tape challenge, by reducing the bureaucracy that the previous Labour Government imposed on our industries, and by reducing the rate of corporation tax so that our business environment can be one of the most competitive in the G20. Budget (Women) Mrs Madeleine Moon (Bridgend) (Lab) 13. What assessment she has made of the implications of the Budget for women in Wales. The Secretary of State for Wales (Mrs Cheryl Gillan) Last month’s Budget was one of fairness and values. Although we had to make some difficult decisions, we are committed to ensuring that women all over the UK play a full part in the economic recovery. Mrs Moon Women in Wales are suffering and struggling with rising food prices, the rising cost of living and the rising costs of child care. In the most recent quarter, 4,000 additional women became unemployed. How many women in Wales will benefit from the reduction in taxation on high-level earners from 50% to 45%? Will that benefit women in Wales? Mrs Gillan Despite the recession, the employment rate for women remains historically high, at 65.3% now compared with 53% in 1971. Employment has fallen more sharply among men during the recession, so frankly it will be expected to rise more quickly as the economy recovers. This is, however, the fourth consecutive set of figures to show employment and economic activity rising in Wales, which I would have thought the hon. Lady would welcome.