Welsh Affairs — House of Commons, 2016-03-03
Topic: Macroeconomics
Guto ap Owain Bebb (Conservative, Centre-right): It is a pleasure to follow the hon. Member for Newport West (Paul Flynn), and it was quite a surprise to hear such a consensual speech from him, which leaves me in the position of carrying on in the tradition of this debate and not being too aggressive in the way I behave I also thank the hon. Member for Newport West for his comments about my predecessor, Lord Wyn Roberts of Conwy, which I think were appreciated by all Members and I know will be appreciated by my constituents and Lord Roberts’s family. His contribution was indeed significant. My right hon. Friend the Member for Clwyd West (Mr Jones) mentioned the A55, and we should not forget that in addition to the work that Wyn Roberts did for the Welsh language, he was the prime mover for the development of the A55 from Chester all the way to Holyhead. It is remarkable that in his maiden speech of 1970, he stated that his ambition as an MP was to ensure that a general hospital was built in Bangor and a dual carriageway was built from Chester to Holyhead. It is quite an achievement for any Member of Parliament to deliver both the promises that he made in his maiden speech, but Wyn delivered so much more Sometimes, in a debate such as this, a Member can feel that, occasionally, he or she can make a difference through membership of a Select Committee. We have heard about investment in the Halton curve railway line to provide better connectivity between north Wales and Liverpool, and I agree that that investment is essential to the economy of north Wales. I remember sitting in the Welsh Affairs Committee back in 2011 when we called for that investment. It is good to know that the work that we do in Select Committees occasionally results in changes I can paint an upbeat picture of the current economic situation in Wales. The hon. Member for Aberavon (Stephen Kinnock)—whom I congratulate on securing the debate—spoke of some of the concerns of his constituents, and I am sure that all Members sympathise with them, because what is happening to the steel industry is indeed a matter of grave concern. However, the Government should be proud of the fact that, since 2010—under the coalition and, subsequently, under a majority Conservative Government—we have seen a significant improvement in employment in Wales, and a significant decrease in unemployment. I think that we should be genuinely pleased about the strides that we are making I also think that, in the context of a St David’s day debate, it is crucial to emphasise that when the Governments in Westminster and Cardiff work together, we see better results. That co-operation, that willingness to work together, often results in a better performance on the part of the Welsh economy. I am in a staggering position, in that I have only received really bad news, from an economic perspective, on two occasions since my election. One example was the recent tragic fire at Llandudno Junction, which caused 50 people to lose their positions at Express Linen Services. I find it remarkable that, although I have been a Member of Parliament for nearly six years, that is one of the few examples of job losses that I can remember. The story in Aberconwy is of a halving of unemployment since 2010. More and more people are in employment, and when I talk to businessmen, they are very positive about the future. I think we should acknowledge the successes that been achieved as a result of co-operation, with successive Secretaries of State trying their best to work with the Welsh Government I think that the present Secretary of State has made the right decision in "pausing" the new Wales Bill, because it is unlikely that there will be any willingness to agree on a way forward between now and the Welsh Assembly elections. That was a mature thing to do. The hon. Member for Caerphilly (Wayne David), who is no longer in the Chamber, should reflect on the fact that it is a brave politician who is willing to pause, and to say that he will look at the evidence and come back with something better. What we want for Wales is a settlement for the long term. Let us be honest: we are building on a devolution settlement that was not about Wales, but all about the Labour party. We are slowly trying to make the settlement more effective and constructive, and I believe that taking time to secure a proper deal is necessary and correct The second big issue facing Wales this year is the European referendum on 23 June. I have a long track record as a Eurosceptic. I certainly experienced some difficulties in a former life as a result of my membership of Business for Sterling, a campaign which launched a great political effort to ensure that we did not join the single currency—and no one in the House today would say that we should have joined it. That campaign was correct; we made the right call. Our slogan was simple: "Europe yes, euro no". Europe is not perfect, but I think that it gives us more than we have to give it, and that we benefit from our membership When we are talking about the north Wales economy, it is sobering to reflect that, just last week, the largest company in north Wales, Airbus, stated clearly that it considered membership of the European Union to be important. Moreover, the largest potential investor in north Wales, Horizon Nuclear Power in Anglesey—which is developing what may be the first new-generation nuclear power station, if the hon. Member for Newport West is correct—has also expressed the clear view that it is important for us to remain in the EU We should also reflect on the small businesses that benefit from our membership of the European Union. I would like to highlight an example in my constituency. A company called Zip World, run by Sean Taylor, did not exist in 2011. I remember Sean coming to see me and telling me that he was going to set up some zip wires. As someone who is scared of heights, I was not particularly interested, but I can tell the House that that company now employs 240 people from my constituency and those of the hon. Members for Arfon (Hywel Williams) and for Dwyfor Meirionnydd (Liz Saville Roberts). Sean has created 240 jobs from scratch in rural Snowdonia, and that is a huge contribution to our economic wellbeing. Even more importantly—my constituency predecessor, Wyn Roberts, would be proud of this fact—70% of those workers are local Welsh speakers. That company makes a huge contribution to keeping those people in their communities, and it was seed-funded by European money I am not going to be quite as reasonable as my hon. Friend the Member for Cardiff North (Craig Williams) on the issue of European grant funding. Wales is a net beneficiary, and it is clear that my constituency of Aberconwy, which is in west Wales and the valleys, is a significant net beneficiary. The figures that I have recently obtained from the local authority, Conwy County Borough Council, show that well over 900 jobs have been created in 240 new ventures as a direct result of the European grant funding of small businesses over the past five years Is the European grant spent well in Wales? I do not think so. We could do much better. In a speech at the National Eisteddfod in Denbighshire in 2013, I highlighted the failures of the way in which we spent that European money in Wales, but I started my speech by saying that those failures were a "made in Wales" problem, not a European problem. The problem is the way in which we have used the money in Wales. When we claim that there is waste in the European funding that is allocated on a regional basis, it is important that we highlight where the problem lies. I would argue that the Welsh Government’s lack of willingness to embrace the private sector is more of an issue in regard to the use of European funding than any decision taken in Brussels Also on the subject of European grant funding, there has been a fantastic achievement by the Wales Office and the Secretary of State for Wales in at long last establishing the funding floor. We have been asking for that for a very long time. However, I would ask our leader in the Assembly to consider carefully whether he genuinely believes that, with the Barnett floor in place, there would be additional money to make up for the current shortfall if we lost European funding to areas such as mine. I very much question that Looking at the European issue from a local perspective, and taking into account agriculture, regional development funding and, more importantly, the trade deals that allow companies such as Airbus and Horizon to invest in north Wales, I believe that despite all the European Union’s flaws, Wales will be stronger in the EU.