Welsh Affairs — House of Commons, 2015-03-05
Topic: Macroeconomics
Edward Glyn Davies (Conservative, Centre-right): Indeed. St David did many wonderful and awe-inspiring things in his long life, including preaching with such passion and fervour at Llanddewi Brefi that the earth rose up around him to form a hill. The most amusing reflection on that stunning achievement was made by the late great Dr John Davies, who said that he could not "conceive of a miracle more superfluous than the creation of a new hill at Llanddewi Brefi." That is a good reflection on Dr John Davies as well as on St David. But It was an impressive trick none the less Holding a Welsh affairs debate on or near St David’s day is not an old tradition of this House. I discovered that while I was reading through the speeches of those who had previously opened what is now the annual Welsh debate. I was hoping that one of my great political heroes, David Lloyd George, had opened a Welsh debate at some stage so that I could say I was following in the great man’s footsteps. However, the first Welsh debate was not held until 1944 by which time the great man had retired from the House. None the less, the first Welsh debate was opened by a Lloyd George—it was Dame Megan Lloyd George, the great man’s daughter, who represented Ynys Môn before the rise to power of Cledwyn Hughes and, indeed, that of the current excellent Member of Parliament for Ynys Môn. That leads me to the second part of my speech, which is the economic temperature of mid-Wales, specifically of my constituency of Montgomeryshire. Reading Dame Megan Lloyd George's speech in 1944, it struck me how little has changed in 70 years. In 1944, Dame Megan spoke of a crisis in the dairy industry, a focus on south Wales at the expense of other parts of Wales, and an almost total absence of concern for mid-Wales. I could so easily have spoken about those same issues today One memorable line from Lady Megan’s speech caught my eye. Sometimes I am not sure whether some of our colleagues representing English constituencies fully understand how we Welsh function. Lady Megan understood that very well. She said: "No Englishman can understand the Welsh. However much he may try, and however sympathetic he may feel, he cannot get inside the skin and bones of a Welshman unless he be born again."—[Official Report, 17 October 1944; Vol. 403, c. 2237.] I hope that that explains some of the ways in which we Welsh behave in this House In 1944, my constituency of Montgomeryshire was in serious long-term decline. The population had dropped from more than 50,000 to 36,000 and was falling like a stone. There were very few employment opportunities for ambitious young people, who were forced to leave the area in search of work. Regional policy had not been yet introduced to rural Wales. It was 20 years later that such policies were introduced by a Labour Government and they continued under successive Conservative Secretaries of State Montgomeryshire has now been transformed. Today it is a genuine success story, with thriving businesses and the lowest unemployment in Wales: only around 500 people are registered as unemployed. The population of Montgomeryshire is now 63,000 and rising. It is not just that new businesses have moved in, but that much of the area has been built up by local entrepreneurs. Coincidentally, I visited some entrepreneurs last Friday. Members may have seen the yellow Alun T. Jones lorries around Wales. I knew Alun when we were teenagers. He has grown to be the Eddie Stobart of Wales, employing very large numbers of people. I then went to the impressive mid-Wales airport, which was established by the late Bob Jones who was tragically killed in an air accident, and is now run by his wife Linda. It is entirely a private sector company. Again, I knew Bob when we were teenagers I then went to a water bottling plant, which is run by Paul Delves in Churchstoke, where another 70 are employed. He is another local lad who has done well, and I could list dozens more. Over the past five years, the level of confidence in Montgomeryshire business has grown hugely, built on the stability and sound economic policies of the Conservative Government. Of course there is more to do. We want to restore the economy to where we want it to be, but none of the businesses wants to risk a return to more public spending and more public debt Finally, I wish to mention the Command Paper, which was published by my right hon. Friend the Secretary of State last week. It outlines a St David's day package of changes to the devolution settlement between the UK Parliament and the National Assembly for Wales. Its publication was a very significant constitutional event for Wales, and represented a major step forward in the process of Welsh devolution. It is too early for any of us to have made a full assessment of the detail of the package, which will have to await the Wales Bill in the next Parliament At this stage, there are just four issues I wish to mention. First, I greatly welcome what I consider to be the most important proposal in the Command Paper, which is the move to a reserved powers model of Welsh devolution. It is sensible that everything should be considered devolved, unless it is specifically reserved to Westminster. Soon after I was elected to the National Assembly for Wales in 1999, I realised that the reserved powers model was needed to give clarity and greater stability to the devolution settlement. There may well continue to be occasions when a Supreme Court is needed to establish a competence, but under a reserved powers model it would be far less likely. That is the most important change included in the St David's day package, and I hope that we can deliver it in the next Parliament The second important issue is the devolution of income tax powers, and here I fear I take a very different view from many other MPs, particularly those on the Labour Benches. I see the proposals as a complete package, which includes the responsibility of levying a significant proportion of income tax in Wales. I have spoken on that issue several times before in this House. I feel so strongly about it that I do not believe we should devolve one iota more power to the Welsh Government until income tax powers are devolved. I accept that any new Wales Bill will have in it a commitment to a referendum on the issue before it becomes a reality, but for the life of me I cannot understand why If returned as a Member of Parliament on 8 May, I shall table an amendment to any future Wales Bill to remove the need for a referendum, and I expect to be supported by Members of every party in this House except Labour, which is desperate to avoid any fiscal accountability to the people of Wales. The Welsh Government simply want to carry on claiming credit for what voters like and blaming Westminster for what the voters do not like, avoiding any tough decisions and preferring comfortable impotence to facing up to the tough decisions that Governments must take. How can it be thought right to refer to the Welsh Assembly as a Welsh Parliament, as we all want, while clinging to a position that means it is in reality not a great deal more than a spending body Another proposal I greatly welcome is the commitment to a Barnett floor. We know that Wales has been underfunded through public spending granted through the block grant for decades, but changes to public spending by the coalition Government mean that underfunding has fallen to a virtually insignificant level. The Secretary of State has pulled off a historic victory for Wales by securing agreement to retain the current level of comparative spending as a floor below which UK Government support to Wales via the block grant will not fall no matter what changes to public spending are made in future. It is a huge win for Wales, and every party in this House should welcome it When a devolution of income tax powers was first proposed, the First Minister of Wales said that should not happen until the lockstep was removed. It has been removed. Then there was the Barnett deficit, but that has been removed as well. Now it is something else, and then it will be something else again. The truth is that Welsh Labour hates the thought of being financially accountable to the people of Wales.